WAGE GRADIENTS, RENT GRADIENTS, AND THE PRICE ELASTICITY OF DEMAND FOR HOUSING AN EMPIRICAL-INVESTIGATION Academic Article

abstract

• As developed in Muth's "Cities and Housing," attainment of locational equilibrium within an urban area implies a necessary functional correspondence between wage and price gradients and the compensated price elasticity of demand for housing. In this paper estimates of the rent and wage gradients are utilized to generate price-elasticity estimates via this equilibrium correspondence. The Box-Cox transformation technique is used with data from the metropolitan Chicago area to test for the functional forms of the wage and rent gradients. The optimal maximum-likelihood functional forms for both gradients yield a price-elasticity estimate of -0.40. 1982.

authors

• Gronberg, Timothy

published proceedings

• JOURNAL OF URBAN ECONOMICS

author list (cited authors)

• EBERTS, R. W., & GRONBERG, T. J.

citation count

• 6

complete list of authors

• EBERTS, RW||GRONBERG, TJ

publication date

• January 1982

publisher

• Elsevier  Publisher

published in

• Journal of Urban Economics  Journal

Digital Object Identifier (DOI)

• 10.1016/0094-1190(82)90013-4

start page

• 168

end page

• 176

volume

• 12

issue

• 2

URL

• http://dx.doi.org/10.1016/0094-1190(82)90013-4