Replicative Evidence on the Demand for Owner-Occupied and Rental Housing

Some important results in urban economic theory and policy analysis rest upon housing demand, and its associated price and income elasticities. The extent to which the affluent choose to live away from the city's center (thus increasing their commuting time) depends on the relative income elasticities of housing demand and valuation of leisure. In a more policy-oriented framework, the relative efficacies of income as opposed to housing price subsidies for low income households depend on the relative values of income and price elasticities.