Residential Attachment and Housing Demand

Mark Dynarski
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Mark Dynarski: Department of Economics, University of California, Davis, California

Urban Studies, 1986, vol. 23, issue 1, 11-20

Abstract: In this paper a model of housing demand behavior is proposed, in which both monetary and non-monetary adjustment costs (termed 'attachment') are allowed to affect demand levels. An empirical implication of the model is that the individual variance around the housing demand curve is likely to increase directly with total adjustment costs. A cross-section housing demand curve is estimated, with the variance specified as a linear function of variables thought to be correlated with total adjustment costs. The results provide qualified support for the assertion that adjustment costs influence housing demand behavior in the manner suggested by the theoretical model.

Date: 1986
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Persistent link: https://EconPapers.repec.org/RePEc:sae:urbstu:v:23:y:1986:i:1:p:11-20

DOI: 10.1080/00420988620080021

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