Trickle-Down Housing Economics

Charles Nathanson
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Charles Nathanson: Northwestern University

No 537, 2019 Meeting Papers from Society for Economic Dynamics

Abstract: This paper provides a quantitative framework for estimating the effects on house prices and household welfare of building different types of housing within a city or metropolitan area. According to our estimates, low-income households without a college degree benefit more from the construction of low-quality rather than high-quality housing, but low-quality construction makes many other households worse off. These conclusions depend on household mobility across cities, the strength of urban spillovers, the indivisibility of housing, and the differential preferences of households with and without a college degree.

Date: 2019
New Economics Papers: this item is included in nep-ure
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Citations: View citations in EconPapers (7)

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