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Teaching the DiPasquale-Wheaton Model

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  • Joseph DeSalvo

    (Department of Economics, University of South Florida)

Abstract

The DiPasquale-Wheaton (1992) model graphically determines rental price, asset price, newly constructed stock, and total stock in a real estate market. Despite its frequent use in academic research, few textbooks exposit the model. We conjecture this is due in part to the difficulty of deriving its comparative static results. We derive a supply curve that simplifies graphical analysis and perform a complete graphical comparative static analysis. Although the main objective of this paper is to encourage pedagogical usage of the model, an appendix provides a mathematical derivation of the comparative static results, which has not heretofore appeared in the literature.

Suggested Citation

  • Joseph DeSalvo, 2017. "Teaching the DiPasquale-Wheaton Model," Working Papers 0117, University of South Florida, Department of Economics.
    • Handle: RePEc:usf:wpaper:0117
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    References listed on IDEAS

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    Cited by:

    1. Trond-Arne Borgersen & Anne Wenche Emblem, 2022. "Mortgage Market Induced Booms and Busts in the Housing Market in a Modified DiPasquale-Wheaton Model," International Real Estate Review, Global Social Science Institute, vol. 25(3), pages 281-306.
    2. Katarzyna Kopczewska & Mateusz Kopyt & Piotr Ćwiakowski, 2021. "Spatial Interactions in Business and Housing Location Models," Land, MDPI, vol. 10(12), pages 1-25, December.

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