Amenities in an urban general equilibrium model

Article Abstract:

A study is presented of capitalization in the context of a general equilibrium Tiebout-median voter model, solved numerically for prices and distributions of consumers which correspond to equilibria. The model's solution indicates that complete capitalization always occurs; this disproves the argument by Hamilton, Edel, and Sclar that capitalization disappears in long run equilibrium. Results also indicate that Yinger's proposition on capitalization is misdirected, since complete capitalization occurs regardless of the presence or absence of amenities. The study argues that capitalization is never appropriately measured by price differentials in a general equilibrium model.

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Hedonic Analysis of a Housing Market in Disequilibrium

Article Abstract:

A dynamic price adjustment model is developed to test the hypothesis that housing market information is capitalized into single family housing prices. This capitalization occurs through a disequilibrium adjustment process. Price variances arise from mortgage-interest rates and neighborhood transaction rates.

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Discrete Choice Models and the Housing Price and Travel to Work Elasticities of Location Demand

Article Abstract:

Models are developed to estimate housing rent, travel time, and travel cost elasticity of location demand. Multinomial and vested logit models are estimated from small zones to reduce bias. The effects of sampling variation are important.

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