THE ELASTICITY OF CAPITAL–LAND SUBSTITUTION IN THE HOUSING CONSTRUCTION SECTOR OF A RAPIDLY URBANIZED CITY: EVIDENCE FROM TURKEY

Işıl Erol and Alper Güzel

Review of Urban & Regional Development Studies, 2006, vol. 18, issue 2, 85-101

Abstract: This paper estimates the elasticity of capital†land substitution for the housing market in Ankara, the capital city of Turkey. Using constant elasticity of substitution (CES) and variable elasticity of substitution (VES) production functions and cross†section data, the paper provides new information to compare the housing supply elasticity of Ankara with that of the USA and the UK cases. Our regression results reveal that housing supply in Ankara is highly inelastic due to the uniform construction regime of local authorities. Moreover, we find that there is a considerable spatial differentiation of urban land density measures within the capital city. Because of the incomplete urbanization process, the elasticity of capital†land substitution is significantly higher in the outer parts of the city.

Date: 2006
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.1111/j.1467-940X.2006.00113.x

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:bla:revurb:v:18:y:2006:i:2:p:85-101

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0917-0553

Access Statistics for this article

More articles in Review of Urban & Regional Development Studies from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().