Estimating spatial spillover in housing construction with nonstationary panel data

Michael Beenstock and Daniel Felsenstein ()

Journal of Housing Economics, 2015, vol. 28, issue C, 42-58

Abstract: A model is proposed in which building contractors have regional preferences so that housing construction in different regions are imperfect substitutes. The model hypothesizes spatial and national spillovers in construction. Although the government does not engage directly in housing construction, it influences regional housing markets by auctioning land to contractors. Contractors are hypothesized to use housing-under-construction as a buffer between starts and completions. Spatial panel data for Israel are used to test the model and investigate the determinants of regional housing construction. Because the spatial panel data are nonstationary, we use spatial panel cointegration methods to estimate the model. The estimated model is used to calculate impulse responses which propagate over time and across space.

Keywords: Regional housing construction; Elasticity of housing supply; Spatial panel cointegration (search for similar items in EconPapers)
JEL-codes: C23 R31 R38 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1051137714000503
Full text for ScienceDirect subscribers only

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:eee:jhouse:v:28:y:2015:i:c:p:42-58

DOI: 10.1016/j.jhe.2014.10.002

Access Statistics for this article

Journal of Housing Economics is currently edited by H. O. Pollakowski

More articles in Journal of Housing Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().