Housing market dynamics with delays in the construction sector

Name: Housing market dynamics with delays in the construction sector
Author: Bahadır, Berrak, Mykhaylova, O.

İsim	Housing market dynamics with delays in the construction sector
Yazar	Bahadır, Berrak, Mykhaylova, O.
Basım Tarihi:	2014-12
Basım Yeri	- Elsevier
Konu	House prices, Building permits, Construction delays, Supply shocks
Tür	Süreli Yayın
Dil	İngilizce
Dijital	Evet
Yazma	Hayır
Kütüphane:	Özyeğin Üniversitesi
Demirbaş Numarası	1051-1377
Kayıt Numarası	15565d64-6326-4a48-bac6-cf8fd204462b
Lokasyon	Economics
Tarih	2014-12
Örnek Metin	Housing supply is subject to several types of delays. On average, it takes 6 months to get approved for a residential building permit and another 2–4 quarters to complete a construction project. We present a simple two-sector model that incorporates these observations and show that the effect of these delays is not uniform: while they amplify the response of house prices to demand shocks, they dampen the effects of housing supply shocks. Moreover, construction activity depends on the relative duration of the shocks and the construction delays: delays dampen construction booms following temporary shocks, but exaggerate building activity following permanent changes in demand or supply conditions. Our results highlight the importance of capturing the nature and the persistence of the shocks when studying the effects of construction sector delays on housing market dynamics.
DOI	10.1016/j.jhe.2014.09.005
Cilt	26

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Housing market dynamics with delays in the construction sector

Yazar Bahadır, Berrak, Mykhaylova, O.

Basım Tarihi 2014-12

Basım Yeri - Elsevier

Konu House prices, Building permits, Construction delays, Supply shocks

Tür Süreli Yayın

Dil İngilizce

Dijital Evet

Yazma Hayır

Kütüphane Özyeğin Üniversitesi

Demirbaş Numarası 1051-1377

Kayıt Numarası 15565d64-6326-4a48-bac6-cf8fd204462b

Lokasyon Economics

Tarih 2014-12

Örnek Metin Housing supply is subject to several types of delays. On average, it takes 6 months to get approved for a residential building permit and another 2–4 quarters to complete a construction project. We present a simple two-sector model that incorporates these observations and show that the effect of these delays is not uniform: while they amplify the response of house prices to demand shocks, they dampen the effects of housing supply shocks. Moreover, construction activity depends on the relative duration of the shocks and the construction delays: delays dampen construction booms following temporary shocks, but exaggerate building activity following permanent changes in demand or supply conditions. Our results highlight the importance of capturing the nature and the persistence of the shocks when studying the effects of construction sector delays on housing market dynamics.

DOI 10.1016/j.jhe.2014.09.005

Cilt 26