Geographic constraints and the housing supply elasticity in Germany

Eyayaw Beze

No 1003, Ruhr Economic Papers from RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen

Abstract: The study estimates the housing supply elasticity and the impact of geographic constraints in Germany from 2008-2019 using the Bartik instrument. The results show that the housing supply is, on average, inelastic, with a floorspace elasticity of 0.22 and a units elasticity of 0.25. The study also reveals that geographical constraints partially affect the housing supply elasticity across districts. Notably, high development intensity decreases the elasticity, while the unavailability of land for development due to restrictive geography has no significant impact on the housing supply elasticity. The housing supply elasticity estimates may prove useful for calibrating quantitative urban or regional models in Germany.

Keywords: House prices; housing supply; housing supply elasticity (search for similar items in EconPapers)
JEL-codes: R31 (search for similar items in EconPapers)
Date: 2023
New Economics Papers: this item is included in nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/269234/1/1838890068.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:rwirep:1003

DOI: 10.4419/96973169

Access Statistics for this paper

More papers in Ruhr Economic Papers from RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().