101
Housing Demand in the Short Run
NOTES
Aggregate studies whi&h neglect housing prices
in focusing
on uic.ome expenditures
include: Margaret Reid, Housing and Income
(Chicago: Universits
of Chicago Press
1962); Alan R. \'\'inger, 'Housing and Income,"
pp. 226-232. Muth's study includes an index of
Western Economic
Journal June 1968,
construction costs (tli
across cities, and de Leeuw's intercity analysis
Boeckh index)
uses the Bureau of Labor
Stjjk-5
city-worker budget to provide an
average price for a
'standard" bundle of housing
services. See Richard F. Moth, "The Demand for
Non-farm Housing," in
The Demand
for Durable Goods, Arnold C. Harberger,
ed. (Chicago: University
of Chicago Press,
1962); Frank do Leeuw and Nkanta F. Ekanern,
"The Demand for
Housing: A Reviexx' of
the Cross-Section Evidence," Review of
Economics and Statistics,
February 1971,
pp.
1-10.
See Mah!on R. Siraszheim, "Estimation of the
Demand for Urban Housing
Services from
Household Interview Dat,i," Revieis of
Economics and Statistics
February i
pp.
1-8; Mahlon R. Straszheim, An Econometric
Analysis of the Urban Housing
Market
(New York: National Bureau of Economic
Research, 1975); John F,
Kain and John M.
Quiglev, Housing Markets ann Racial
Discrimination: A MicIOcConornic
Analysis (New
York: National Bureau of Economic Research,
1975); John M. Quigey,
"Racial Dis-
crinhination and the Housing Consumption
of Black Households," in
Patterns of Racial
Ljiscrirriin,stion
Vol.
1: Housing, George M. Von
Furstenberg ed. (Lexington,
Mass.:
D.C. Heath, 1974); A. Thomas King,
"Households in Housing Markets' The
Demand for
Housing Components" (College Park, Md.:
Bureau of Business and
Economic Research,
University of Maryland, 1973).
The classic references include: Richard F.
Muth, Cities and Horning (Chicago:
Univer-
sity
of Chicago
Press,
1969); Lowdon Wingo,
Transportation and Urban Land
(Washington, DC,: Resources for the Future,
1961); William Alonso, Location and
Land
Use (Cambridge: Harvard University Press,
1964).
James L. Ssveeney, "Quality, Commodity,
Hierarchies, and Housing Markets," Stanford
University, Department of Engineering.Economic
Systems, mimeographed, October
1972.
These estimates of the implicit prices of housing
attributes are derived from Lancaster's
analysis of hedonic goods. See Kelvin
J.
Lancaster, "A New Approach to Consumer
Theory," Journal of Political Economy,
April 1966, PP
132-156; Sherwin Rosen,
"Hedonic Prices and Implicit Markets: Product
Differentiation in Pure Competition,"
Journal of Political Economy, January/February
1974, pp. 34-55. For a recent survey of
this literatwe as related to housing markets
see Michael J. Ball, "Recent Empirical Work
on the Determinants of Relative House Prices," Urban
Studies, June 1973, PF) 213-233.
John F. Kain, "The Journey
to Woik as a Determinant of Residential Location," Papers
and Proceedings of the Regional Science
Association
1962, pp. 137-161.
7.
It may he that the! types of residential
housing form a "hierarchy" in the sense defined
by Sweeney, i.e. that
(NI)
UX11, z0) > U(X, z0)
tor all coilsurners. More generally,
since x is multidimensional, it is likely that only some
housing types are strictly hierarchical.
For example, it the components of x include
"housing quality" and "size," it
may be true that all consumers prefer higher quality to
lower quality units and larger dwelling
units to smaller units; consumers may have
mixed preferences, however, regarding the
tradeoff between larger, lower quality units
and smaller, higher quality
units.