• Medientyp: E-Book
  • Titel: The Production Function for Housing : Evidence from France
  • Beteiligte: Combes, Pierre-Philippe [Verfasser:in]; Duranton, Gilles [Sonstige Person, Familie und Körperschaft]; Gobillon, Laurent [Sonstige Person, Familie und Körperschaft]
  • Erschienen: [S.l.]: SSRN, [2016]
  • Erschienen in: IZA Discussion Paper ; No. 10373
  • Umfang: 1 Online-Ressource (46 p)
  • Sprache: Englisch
  • DOI: 10.2139/ssrn.2879780
  • Identifikator:
  • Schlagwörter: production function ; housing
  • Entstehung:
  • Anmerkungen:
  • Beschreibung: We propose a new nonparametric approach to estimate the production function for housing. Our estimation treats output as a latent variable and relies on the first-order condition for profit maximisation with respect to non-land inputs by competitive house builders. For parcels of a given size, we compute housing by summing across the marginal products of non-land inputs. Differences in non-land inputs are caused by differences in land prices that reflect differences in the demand for housing across locations. We implement our methodology on newly-built single-family homes in France. We find that the production function for housing is reasonably well, though not perfectly, approximated by a Cobb-Douglas function and close to constant returns. After correcting for differences in user costs between land and non-land inputs and taking care of some estimation concerns, we estimate an elasticity of housing production with respect to non-land inputs of about 0.80
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