Variable elasticity of substitution in urban housing production

Färe, Rolf; Yoon, Bong Joon

doi:10.1016/0094-1190(81)90007-3

Cited by 9 publications

(5 citation statements)

References 3 publications

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“…Instead, this is undertaken by Heun et al [35], which is an empirical complement to this landscape paper, where four key modelling choices are examined to establish the differences in resulting CES parameter values, and the potential effects on downstream energy policy. Third, by considering only C-D and CES aggregate production functions, we exclude further discussion on less popular aggregate production functions (e.g., translog [36], variable elasticity of substitution (VES) [37], linear exponential (LINEX) [38], linear [39] and Leontief [40] functions) and cost functions-which are a price-based alternative to production functions [36,[41][42][43]. We also limit widespread further discussion on the important class of capital-labour-energy-material (KLEM) CES-based production functions.…”

Section: Aim and Scope Of Papermentioning

confidence: 99%

Energy-Extended CES Aggregate Production: Current Aspects of Their Specification and Econometric Estimation

et al. 2017

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Capital-labour-energy Constant Elasticity of Substitution (CES) production functions and their estimated parameters now form a key part of energy-economy models which inform energy and emissions policy. However, the collation and guidance as to the specification and estimation choices involved with such energy-extended CES functions is disparate. This risks poorly specified and estimated CES functions, with knock-on implications for downstream energy-economic models and climate policy. In response, as a first step, this paper assembles in one place the major considerations involved in the empirical estimation of these CES functions. Discussions of the choices and their implications lead to recommendations for CES empiricists. The extensive bibliography allows those interested to dig deeper into any aspect of the CES parameter estimation process.

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Section: Aim and Scope Of Papermentioning

confidence: 99%

Energy-Extended CES Aggregate Production: Current Aspects of Their Specification and Econometric Estimation

et al. 2017

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“…Some insights to these questions are already available from the literature. For example, there have been a number of studies of housing production, concerned mainly with the elasticity of substitution between land and non-land inputs to production (see, for example, Sirmans et al, 1979;Färe et al, 1981;McDonald, 1981).…”

Section: What Do Economic Theory and Evidence Tell Us About Housing Smentioning

confidence: 99%

Housing Supply and Suppliers: Are the Microeconomics of Housing Developers Important?

Leishman

2015

Housing Studies

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In this paper I review the US, UK and international literature on the responsiveness of housing supply to demand. This is a well developed area of the literature, but I put forward two new arguments: that developers face downward sloping demand curves in the housing market, and that housing developers as firms are sufficiently heterogenous that their output decisions cannot be generalised. I draw on the international literature but use the recent UK experience as a lens, arguing that the post Barker review planning policy and housing supply reforms did not yield as much additional housing supply as had been hoped and expected by policy markets and the housing development industry itself. After introducing two specific propositions, I present new statistical estimates that are at least highly suggestive that firm-specific factors are of importance in understanding supply responsiveness.

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“…Making land available for development is an increase in supply that reduces the price of such land. The lower price then induces lower density of development (for examples see Fare and Yoon 1981;McDonald 1981;or Jackson et al 1984).…”

Section: Literature Reviewmentioning

confidence: 99%

Land Use and Growth Impacts from Highway Capacity Increases

Sanchez

2004

J. Urban Plann. Dev.

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This analysis examined the historical relationship between land use changes and the location of capacity increasing highway projects in the State of Oregon from 1970 to 1990. Aerial photography for 18 cities was used to delineate the extent of urban development in each time period. A geographic information system (GIS) was used to assemble the data. Using this data, a logit regression model tested the significance of geographic variables such as proximity to highway projects, land use zoning classification, city size, and other spatial characteristics. The analytical methods used in this study incorporated a set of commonly used techniques to assess highway impacts on urban development patterns. The results suggest that for the 18 selected cities, the spatial measures performed well in predicting the location of urban development from 1970 to 1990. In addition, the results of the logit regression model indicated that controlling for other location factors, urban development had not clustered along state high project corridors as was suspected. In troduction Similar to other states, Oregon has experienced significant rates of growth in and around its urbanized areas. The growth has not been limited to metropolitan areas, with many non-metropolitan cities having experienced new w•ban development resulting from population increases in the range of 4 to 9 percent annually between 1970 and 1997 (Center for Population Research and Census. 1998). In an attempt to manage growth impacts, Oregon instituted a statewide policy of urban growth boundaries (UGBs). These boundaries are used to contain and direct urban development and provide coordination between jurisdictions (Knaap and Nelson 1992). As urban areas grow in size, road and highway construction projects are used to facilitate vehicular travel patterns. In the period from 1975 to 1995, per capita vehicle miles traveled (VMT) increased by more than 50 percent within Oregon's Willamette Valley, with much of this increase being attributed to an increase in the number of single-occupancy conunuters (Gregor 1998). The challenge has been to accommodate local and regional travel demand with highway projects whi le not encouraging dispersed development, especially at the urban fringe. It has been shown that, while new development generates demand for new transportation facilities, increased accessibility from new highway facilities can also induce urban development (Moore and Thorsnes 1994). In this dynamic relationship between

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Variable elasticity of substitution in urban housing production

Cited by 9 publications

References 3 publications

Energy-Extended CES Aggregate Production: Current Aspects of Their Specification and Econometric Estimation

Energy-Extended CES Aggregate Production: Current Aspects of Their Specification and Econometric Estimation

Housing Supply and Suppliers: Are the Microeconomics of Housing Developers Important?

Land Use and Growth Impacts from Highway Capacity Increases

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