Bidding models of housing markets
Article Abstract:
Three characteristics of the housing market are overlooked by the bid rent model: (1) housing prices are determined by sequential bidding and consequently may not reflect highest bids, (2) bidders may not be well informed of market conditions prior to making bids on houses, and (3) house bid distributions are truncated according to sellers' asking prices. A new housing bidding model is developed that includes these characteristics of the housing market. The new bidding model is econometrically tested and compared to the standard bid rent model, with the result that the new model is demonstrated to be superior to the standard model with regard to describing the housing market and its operations.
Publication Name: Journal of Urban Economics
Subject: Government
ISSN: 0094-1190
Year: 1986
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The optimal design of housing allowances
Article Abstract:
An examination of the optimal design of a housing allowance is presented by analyzing two general kinds of allowances: the Percentage-of-Rent allowance and the Gap allowance. Considering both types of allowances is significant because there can be important differences in the costs of reaching the same standard of social welfare when using different allowances, sometimes up to 20%. Research results indicate that neither the Percentage-of-Rent allowance nor the Gap allowance were optimal under all conditions.
Publication Name: Journal of Urban Economics
Subject: Government
ISSN: 0094-1190
Year: 1990
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Shelter allowances in a general equilibrium setting: a model and some situations
Article Abstract:
Shelter allowance programs directed towards low income housing have an overall impact on urban housing markets, which can be best traced by a model developed from consumer and relevant market theory. Findings from such a model indicate that income gap programs have the pronounced impact on program demand and subsequently an total housing demand, while rent proportion and cash transfer program effects are largely restricted to participating households.
Publication Name: Journal of Urban Economics
Subject: Government
ISSN: 0094-1190
Year: 1985
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