House Prices and Growth with Fixed Land Supply
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Abstract We analyse housing costs and patterns of residential development over the long term in a dynamic general equilibrium. We show that in a growing economy the speed of travel improvements is crucial to the evolution of land and house prices. We derive a condition for the rate of change in transport efficiency that generates flat land and house prices on a balanced growth path. We present evidence that this condition was satisfied in many countries between the mid-nineteenth century and the mid-twentieth century, but since then passenger transport improvements have slowed down with major implications for how house prices evolve.
2017 ◽
Vol 01
(01)
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pp. 1740005
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2019 ◽
Vol 3
(3)
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pp. 719-730
2009 ◽
Vol 10
(4)
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pp. 384-400
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1972 ◽
Vol 1
(3-4)
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pp. 379-396
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2006 ◽
Vol 7
(3)
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pp. 297-316
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2011 ◽
Vol 16
(S3)
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pp. 331-354
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2016 ◽
Vol 21
(8)
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pp. 1837-1856
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