Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/86278 
Year of Publication: 
2007
Series/Report no.: 
Tinbergen Institute Discussion Paper No. 07-058/3
Publisher: 
Tinbergen Institute, Amsterdam and Rotterdam
Abstract: 
In spite of a growing recognition of the importance of supply conditions for the level and volatility of house prices, empirical work on housing supply outside the US is scarce. This paper considers various measures of housing supply in the Netherlands, where real house prices have roughly tripled since 1970. Besides the volume of investment in residential structures, and new housing construction in units, we derive time series of structure and location quality in a hedonic analysis. Each of these variables appears to be almost fully inelastic with respect to house prices in at least the short to medium long run. Further analysis of the quality of location index shows that conventional models of competitive land and housing markets cannot account for these findings. However, they may be well explained in terms of the rather extensive body of interventions by the Dutch government.
Subjects: 
housing supply
residential investment
housing markets
land use regulation
JEL: 
E22
R31
R52
Document Type: 
Working Paper

Files in This Item:
File
Size
265.96 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.