Estimating the Income Elasticity of Demand for Housing: A Comparison of Traditional and Lorenz-Concentration Curve Methodologies

Hansen, Julia L.; Formby, John P.; Smith, William J.

doi:10.1006/jhec.1998.0237

Cited by 31 publications

(27 citation statements)

References 18 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The implied income elasticity of housing demand in the model is .33, which is toward the low end of estimates in the literature, e.g. Hansen et al (1998).…”

mentioning

confidence: 66%

Why has home ownership fallen among the young?

Fisher¹,

Gervais²

2009

Working Paper Series

View full text Add to dashboard Cite

“…The implied income elasticity of housing demand in the model is .33, which is toward the low end of estimates in the literature, e.g. Hansen et al (1998).…”

mentioning

confidence: 66%

Why has home ownership fallen among the young?

Fisher¹,

Gervais²

2009

Working Paper Series

View full text Add to dashboard Cite

“…Polinsky (1977) surveyed the literature and derived his own estimates using US data and concluded that an own price elasticity of -0.75 and an income elasticity of 0.75 was consistent with a large amount of the research at that time. Hansen et al (1998) obtained an income elasticity of 0.88 which, in the context of our model, does not provide substantially different results. Therefore, in our simulations we used an own price elasticity of -0.75 and an income elasticity of 0.75.…”

Section: ΄ ΅·mentioning

confidence: 72%

The Impact of the US Sales Tax Rate on City Size and Economic Activity: A CGE Approach

Cutler

Strelnikova

2004

Urban Studies

View full text Add to dashboard Cite

This paper analyses the effects of the change in the US sales tax on economic activity and city size using a computable general equilibrium (CGE) model. Previous works have been designed to isolate the effects of a sales tax change on the particular parameters, such as city size, non-central retail activity and the value of housing. This research summarises the effects of a change in the sales tax rate on all the relevant variables in the context of one model. The underlined theoretical foundation is tested using data collected for the city of Fort Collins, a jurisdiction of approximately 100 000 people in northern Colorado, USA.

show abstract

“…Estimates of housing demand elasticities vary widely in the literature. See, for example, Glaeser et al (2008), Haurin et al (1994) and Hansen et al (1998). We require only that housing demand be strictly increasing in wealth or permanent income and strictly decreasing in price, all else equal.…”

Section: Model Setupmentioning

confidence: 99%

Does home owning smooth the variability of future housing consumption?

Paciorek

Sinai

2012

Journal of Urban Economics

View full text Add to dashboard Cite

JEL classification: D8 D9 E2 G1 J6 R2 R3 Keywords: Housing House price risk Mobility Consumption Volatility a b s t r a c tWe show that the hedging benefit of owning a home reduces the variability of housing consumption after a move. When a current home owner's house price covaries positively with housing costs in a future city, changes in the future cost of housing are offset by commensurate changes in wealth before the move. Using Census micro-data, we find that the cross-sectional variation in house values subsequent to a move is lower for home owners who moved between more highly covarying cities. Our preferred estimates imply that an increase in covariance of one standard deviation reduces the variance of subsequent housing consumption by about 11%. Households at the top end of the covariance distribution who are likely to have owned large homes before moving get the largest reductions, of up to 40% relative to households at the median.

show abstract

Estimating the Income Elasticity of Demand for Housing: A Comparison of Traditional and Lorenz-Concentration Curve Methodologies

Cited by 31 publications

References 18 publications

Why has home ownership fallen among the young?

Why has home ownership fallen among the young?

The Impact of the US Sales Tax Rate on City Size and Economic Activity: A CGE Approach

Does home owning smooth the variability of future housing consumption?

Contact Info

Product

Resources

About