Measuring the Supply Response to Housing Allowances.

by C. Peter Rydell

Purchase Print Copy

 FormatList Price Price
Add to Cart Paperback35 pages $20.00 $16.00 20% Web Discount

One objective of the Housing Assistance Supply Experiment is to measure price-and-quantity changes in the supply of housing services following stimulation of the housing market by allowance-augmented demand. Alternative methodologies are: input accounting, input-output accounting using production functions, and output accounting using hedonic indexes. Empirical work on a three-factor (land, improvements, and services) CES production function for rental housing indicates that the elasticity of substitution between pairs of inputs is approximately .5 for all property types examined. The distribution parameters in the production function vary by property type, however, and this finding is consistent with the common observation that apartment buildings tend to be located on higher priced land than single-family houses. 35 pp. Ref.

This report is part of the RAND Corporation paper series. The paper was a product of the RAND Corporation from 1948 to 2003 that captured speeches, memorials, and derivative research, usually prepared on authors' own time and meant to be the scholarly or scientific contribution of individual authors to their professional fields. Papers were less formal than reports and did not require rigorous peer review.

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.