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Bator Anne and Hervé Blanchard
''The housing price index and the number of housing units: a surprising co-movement in France''
( 2024, Vol. 44 No.1 )
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.
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
Manuscript Received : Mar 10 2022 Manuscript Accepted : Mar 30 2024

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