IDEAS home Printed from https://ideas.repec.org/a/sae/urbstu/v18y1981i3p365-369.html
   My bibliography  Save this article

Estimating Inter-city Differences in the Price of Housing Services: Further Evidence 1

Author

Listed:
  • Robert Gillingham

    (Division of Price and Index Number Research, Office of Prices and Living Conditions, US Bureau of Labor Statistics)

  • John S. Greenlees

    (Division of Price and Index Number Research, Office of Prices and Living Conditions, US Bureau of Labor Statistics)

Abstract

This paper reconsiders an approach to inter-area house price index construction applied by Harvey Rosen in a recent article in Urban Studies. Rosen's cost function-based approach is shown to rely upon certain implicit assumptions regarding consumer preferences and housing production technology. Using FHA home purchase data, we estimate a more general production model and generate alternative inter-area indexes. Based on our results, Rosen's production technology assumptions are rejected. Further, the production-theoretic indexes are shown to differ only negligibly from a fixed-weight index using FHA data. Thus the difference which Rosen finds between the production-theoretic FHA and published BLS indexes does not result from Rosen's recognition of substitution in production, but because of very different data sources and scopes of coverage.

Suggested Citation

  • Robert Gillingham & John S. Greenlees, 1981. "Estimating Inter-city Differences in the Price of Housing Services: Further Evidence 1," Urban Studies, Urban Studies Journal Limited, vol. 18(3), pages 365-369, October.
    • Handle: RePEc:sae:urbstu:v:18:y:1981:i:3:p:365-369
    DOI: 10.1080/00420988120080661
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1080/00420988120080661
    Download Restriction: no
    File URL: https://libkey.io/10.1080/00420988120080661?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Robert Gillingham, 1975. "Place to Place Rent Comparisons," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 4, number 1, pages 153-178, National Bureau of Economic Research, Inc.
    2. Christensen, Laurits R & Jorgenson, Dale W & Lau, Lawrence J, 1975. "Transcendental Logarithmic Utility Functions," American Economic Review, American Economic Association, vol. 65(3), pages 367-383, June.
    3. Ernst R. Berndt & Laurits R. Christensen, 1973. "The Internal Structure of Functional Relationships: Separability, Substitution, and Aggregation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 40(3), pages 403-410.
    4. Lau, Lawrence J., 1969. "Duality and the structure of utility functions," Journal of Economic Theory, Elsevier, vol. 1(4), pages 374-396, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:ags:aaea20:304636 is not listed on IDEAS
    2. Ulrich R. Kohli, 1983. "The Le Châtelier Principle and the Demand for Imports in the Short Run and the Medium Run: Australia, 1959–60–1978–79," The Economic Record, The Economic Society of Australia, vol. 59(2), pages 149-165, June.
    3. Marshall Reinsdorf & Jack E. Triplett, 2009. "A Review of Reviews: Ninety Years of Professional Thinking About the Consumer Price Index," NBER Chapters, in: Price Index Concepts and Measurement, pages 17-83, National Bureau of Economic Research, Inc.
    4. Matsuyama, Kiminori, 2017. "Beyond CES: Three Alternative Classes of Flexible Homothetic Demand Systems," CEPR Discussion Papers 12210, C.E.P.R. Discussion Papers.
    5. Han, Han Soo, 1990. "The theoretical input-output system with flexible technological coefficients based on the two-stage level CES-type production function," ISU General Staff Papers 1990010108000010500, Iowa State University, Department of Economics.
    6. Barnett, William A. & Serletis, Apostolos, 2008. "Consumer preferences and demand systems," Journal of Econometrics, Elsevier, vol. 147(2), pages 210-224, December.
    7. Keuzenkamp, Hugo A. & Barten, Anton P., 1995. "Rejection without falsification on the history of testing the homogeneity condition in the theory of consumer demand," Journal of Econometrics, Elsevier, vol. 67(1), pages 103-127, May.
    8. Denis Conniffe, 2006. "Indirect addilog translation of indirect utility functions," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 39(4), pages 1388-1397, November.
    9. Yu, Wusheng & Hertel, Thomas W. & Preckel, Paul V. & Eales, James S., 2004. "Projecting world food demand using alternative demand systems," Economic Modelling, Elsevier, vol. 21(1), pages 99-129, January.
    10. Bjarne S. Jensen, 2004. "Pareto Efficiency, Relative Prices, and Solutions to CGE Models," DEGIT Conference Papers c009_006, DEGIT, Dynamics, Economic Growth, and International Trade.
    11. Scholnick, Barry & Massoud, Nadia & Saunders, Anthony & Carbo-Valverde, Santiago & Rodríguez-Fernández, Francisco, 2008. "The economics of credit cards, debit cards and ATMs: A survey and some new evidence," Journal of Banking & Finance, Elsevier, vol. 32(8), pages 1468-1483, August.
    12. Nir Billfeld & Moshe Kim, 2024. "Context-dependent Causality (the Non-Nonotonic Case)," Papers 2404.05021, arXiv.org.
    13. Moschini, G. & Moro, D., 1993. "A Food demand System for Canada," Papers 1-93, Gouvernement du Canada - Agriculture Canada.
    14. Germán Coloma, 2019. "The Effect of Horizontal Mergers on Efficiency and Market Power: An Application to the Argentine Hamburger Market," CEMA Working Papers: Serie Documentos de Trabajo. 705, Universidad del CEMA.
    15. Xiangdan Piao, 2021. "Marriage Stability and Private Versus Shared Expenditures Within Families: Evidence from Japanese Families," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 153(2), pages 533-559, January.
    16. Bitros, G.C. & Panas, E.J., 1999. "Another Look at the Inflation-Productivity Trade-Off," Athens University of Economics and Business 114, Athens University of Economics and Business, Department of International and European Economic Studies.
    17. LaFrance, Jeffrey T. & Beatty, Timothy K. M. & Pope, Rulon D., 2004. "Building Gorman's Nest," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt2ws698td, Department of Agricultural & Resource Economics, UC Berkeley.
    18. Hoy, Kyle A. & Wrenn, Douglas H., 2018. "Unconventional energy, taxation, and interstate welfare: An analysis of Pennsylvania's severance tax policy," Energy Economics, Elsevier, vol. 73(C), pages 53-65.
    19. Paula Carvalho Pereda & Denisard Cneio de Oliveira Alves, 2008. "Demand for Nutrients in Brazil," Anais do XXXVI Encontro Nacional de Economia [Proceedings of the 36th Brazilian Economics Meeting] 200807211136590, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    20. Millimet, Daniel L. & Tchernis, Rusty, 2008. "Estimating high-dimensional demand systems in the presence of many binding non-negativity constraints," Journal of Econometrics, Elsevier, vol. 147(2), pages 384-395, December.
    21. Holt, Matthew T., 2002. "Inverse demand systems and choice of functional form," European Economic Review, Elsevier, vol. 46(1), pages 117-142, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:urbstu:v:18:y:1981:i:3:p:365-369. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.gla.ac.uk/departments/urbanstudiesjournal .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.