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Bator Anne and Hervé Blanchard |
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''The housing price index and the number of housing units: a surprising co-movement in France'' |
( 2024, Vol. 44 No.1 ) |
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We examine the relationship between the evolution of the housing price index and the number of housing units from 1968 to 2015. Using a simultaneous equation framework, we find a positive relationship between housing supply and the housing price index. Our research suggests that there is an analogy between the Braess paradox and the housing problem. We find a positive income elasticity of demand as well as a positive price elasticity of demand that tends to zero. |
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Keywords: Braess paradox, housing market, simultaneous equations |
JEL: Y1 - Special Issue in Honor of Michel Terraza R2 - Urban, Rural, and Regional Economics: Household Analysis: General |
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Manuscript Received : Mar 10 2022 | | Manuscript Accepted : Mar 30 2024 |
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