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Urban Structure and Housing Prices: Some Evidence from Australian Cities

Author

Listed:
  • Mariano Kulish

    (Reserve Bank of Australia)

  • Anthony Richards

    (Reserve Bank of Australia)

  • Christian Gillitzer

    (Reserve Bank of Australia)

Abstract

This paper studies determinants of some aspects of the structure of cities, including density and the price of land and housing. We use a version of the Alonso-Muth-Mills model, calibrated to broadly match some of the features of a representative large city. While the calibrated model omits many real-world features, it can nonetheless be used to explore the impact of factors such as: (i) the provision of transport infrastructure; (ii) zoning policies that limit housing density; (iii) frictions on the production of housing; and (iv) population size. The empirical section of the paper shows that the model is consistent with some empirical regularities for large Australian cities. The results of the paper draw attention to structural factors that may have contributed to developments in the Australian housing market in recent years.

Suggested Citation

  • Mariano Kulish & Anthony Richards & Christian Gillitzer, 2011. "Urban Structure and Housing Prices: Some Evidence from Australian Cities," RBA Research Discussion Papers rdp2011-03, Reserve Bank of Australia.
  • Handle: RePEc:rba:rbardp:rdp2011-03
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    References listed on IDEAS

    as
    1. Alex Anas & Richard Arnott & Kenneth A. Small, 1998. "Urban Spatial Structure," Journal of Economic Literature, American Economic Association, vol. 36(3), pages 1426-1464, September.
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    5. Commission, Productivity, 2011. "Performance Benchmarking of Australian Business Regulation: Planning, Zoning and Development Assessments," Research Reports, Productivity Commission, Government of Australia, volume 2, number 46.
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    7. Paul Cheshire & Stephen Sheppard, 2005. "The Introduction of Price Signals into Land Use Planning Decision-making: A Proposal," Urban Studies, Urban Studies Journal Limited, vol. 42(4), pages 647-663, April.
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    More about this item

    Keywords

    housing; housing prices; land prices; zoning; land use;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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