Abstract
Using data for 1974-1990 we estimate an econometric model of the Israeli housing market. Novel features of the model include the treatment of the starts-completions nexus, the implications of capital market imperfections for both building contractors and households, and the effects of public sector housing construction on the dynamics of the housing market. We find that the price elasticity of demand for housing is small, as is the supply elasticity. This implies that shocks to the housing market continue to affect housing prices and new building for many years.
| Original language | English |
|---|---|
| Pages (from-to) | 21-49 |
| Number of pages | 29 |
| Journal | Regional Science and Urban Economics |
| Volume | 28 |
| Issue number | 1 |
| DOIs | |
| State | Published - 1 Jan 1998 |
Keywords
- Econometric model
- Housing
- Israel
- Time to build
