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.
Get full access to this article
View all access options for this article.
References
1.
Boehm, T. (1981). Tunure Choice and Expected Mobility: A Synthesis . Journal of Urban Economics, Vol. 10: 375-389.
2.
Dunn, L.F. (1979). Measuring the Value of Community. Journal of Urban Economics, Vol. 6: 371-382.
3.
Dynarski, M. (1983). Housing Choices with Residential Attachment. Davis Working Paper No. 193, University of California.
4.
Dynarski, M. (1985). Housing Demand and Disequilibrium. Journal of Urban Economics, Vol. 17: 42-57.
5.
Goodman, J.L. (1976). Housing Consumption Disequilibrium and Local Residential Mobility. Environment and Planning, Vol. 3: 855-874.
6.
Grether, D. and Mieszkowski, P. (1974). Determinants of Real Estate Values. Journal of Urban Economics, Vol. 1: 127-146.
7.
Hanushek, E. and Quigley, J. (1978a). The Dynamics of the Housing Market: A Stock Adjustment Model of Housing Consumption. Journal of Urban Economics, Vol. 5: 90-111.
8.
Hanushek, E. and Quigley, J. (1978b). An Explicit Model of Intra-Metropolitan Mobility . Land Economics, Vol. 54: 411-429.
9.
Judge, G., Griffiths, W., Hill, R. and Lee, T-C. (1980). The Theory and Practice of Econometrics, New York: Wiley.
10.
Lee, L.F. and Trost, R. (1978). Estimation of Some Limited Dependent Variable Models with Applications to Housing Demand. Journal of Econometrics , Vol. 8: 357-382.
11.
Michelson, W. (1977). Environmental Choice, Human Behavior, and Residential Satisfaction, New York: Oxford University Press.
12.
Muth, R. (1968). Urban Residential Land and Housing Markets, in Perloff, H. and Wingo, Q. eds. Issues in Urban Economics, Baltimore : Johns Hopkins.
13.
Onaka, J.L. (1983). A Multiple-Attribute Housing Disequilibrium Model of Residential Mobility. Environment and Planning, Vol. 15: 751-765.
14.
Quigley, J. and Weinberg, D. (1977). Intra-Urban Residential Mobility: A Review and Synthesis. Internatiomal RegionalScience Review, Vol. 2: 41-66.
15.
Rosen, H. (1979). Housing Decisions and the US Income Tax: An Econometric Analysis. Journal of Public Economics, Vol. 11: 1-25.
16.
Rosen, S. (1974). Hedonic Prices and Implicit Markets. Journal of Political Economy, Vol. 82: 34-55.
17.
Roskill Commission On The Third London Airport ( 1970). Papers and Proceedings, Vol. VII, London: HMSO.
18.
Theil, H. (1971). Principles of Econometrics, New York: Wiley.
19.
University Of Michigan (1973). Panel Study of Income Dynamics, Vols. 1 and 2.
20.
Us Bureau Of Labor Statistics (1970). Three Budgets for an Urban Family of Four, Washington : GPO.
21.
Varian, H. (1978). Microeconomic Analysis, New York: Norton.
22.
Venti, S. and Wise, D. (1984). Moving and Housing Expenditure: Transaction Costs and Disequilibrium. Journal of Public Economics, Vol. 23: 207-243.
23.
Weinberg, D., Friedman, J. and Mayo, S. (1981). Intraurban Residential Mobility: The Role of Transactions Costs, Market Imperfections, and Household Disequilibrium. Journal of Urban Economics, Vol. 9: 332-349.
24.
Wolpert, J. (1965). Behavioral Aspects of the Decision to Migrate. Papers of theRegional Science Association, Vol. 15: 159-169.
