A1 Vertaisarvioitu alkuperäisartikkeli tieteellisessä lehdessä
Buying a Home with a Resale Value: Location, Location, Location
Tekijät: Haavio M, Kauppi H
Kustantaja: WILEY-BLACKWELL
Julkaisuvuosi: 2013
Journal: Scandinavian Journal of Economics
Tietokannassa oleva lehden nimi: SCANDINAVIAN JOURNAL OF ECONOMICS
Lehden akronyymi: SCAND J ECON
Vuosikerta: 115
Numero: 4
Aloitussivu: 1046
Lopetussivu: 1083
Sivujen määrä: 38
ISSN: 0347-0520
DOI: https://doi.org/10.1111/sjoe.12033
Tiivistelmä
We develop a dynamic multiregion model, where a household's choice of housing location depends on its current wealth and its current type, and involves both consumption and investment considerations. The relative strength of the consumption motive and the investment motive determines the equilibrium pattern of residential sorting. A strong investment (consumption) motive implies sorting according to household type (wealth). The model predicts that large house-price fluctuations are associated with a low degree of sorting by type. This prediction is consistent with evidence from US metropolitan areas when income, education, and age are used as proxies for household type.
We develop a dynamic multiregion model, where a household's choice of housing location depends on its current wealth and its current type, and involves both consumption and investment considerations. The relative strength of the consumption motive and the investment motive determines the equilibrium pattern of residential sorting. A strong investment (consumption) motive implies sorting according to household type (wealth). The model predicts that large house-price fluctuations are associated with a low degree of sorting by type. This prediction is consistent with evidence from US metropolitan areas when income, education, and age are used as proxies for household type.
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