Economics Department
Working Papers in Economics
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TITLE:
A General Equilibrium Spatial Model of Housing Quality and Quantity
AUTHOR(S):
Richard Arnott, Boston College
Ralph Braid, Wayne State University
Russell Davidson, GREQE, Queen's University
David Pines , Tel-Aviv University
DOCUMENT TYPE: Article
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ABSTRACT:
This paper examines the properties of stationary-state general equilibrium in a monocentric city with durable housing. On the demand side, identical households choose location, housing quality and quantity (floor area), and other goods. On the supply side, developers choose the structural density and time path of quality (which depends on construction quality and maintenance) of buildings. Under a certain set of assumptions, existence and uniqueness of equilibrium are proved, and its comparative static/dynamic properties are determined.