The effect of gasoline prices on household location
AbstractBy raising commuting costs, an increase in gasoline prices should reduce the demand for housing in areas far from employment centers relative to locations closer to jobs. Using annual panel data on a large number of ZIP codes and municipalities from 1981 to 2008, we find that a 10 percent increase in gas prices leads to a 10 percent decrease in construction in locations with a long average commute relative to other locations, but to no significant change in house prices. Thus, the supply response may prevent the change in housing demand from capitalizing in house prices.
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Bibliographic InfoPaper provided by Institut d'Economia de Barcelona (IEB) in its series Working Papers with number 2010/28.
Length: 36 pages
Date of creation: 2010
Date of revision:
Gasoline price; household location; housing; commuting;
Other versions of this item:
- Raven Molloy & Hui Shan, 2010. "The effect of gasoline prices on household location," Finance and Economics Discussion Series 2010-36, Board of Governors of the Federal Reserve System (U.S.).
- Q31 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Demand and Supply
- R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
- R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-10-16 (All new papers)
- NEP-ENE-2010-10-16 (Energy Economics)
- NEP-URE-2010-10-16 (Urban & Real Estate Economics)
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- Michael J. Boehm, 2013. "Concentration Versus Re-Matching? Evidence About the Locational Effects of Commuting Costs," CEP Discussion Papers dp1207, Centre for Economic Performance, LSE.
- Larson, William & Liu, Feng & Yezer, Anthony, 2012. "Energy footprint of the city: Effects of urban land use and transportation policies," Journal of Urban Economics, Elsevier, vol. 72(2), pages 147-159.
- David Genesove & Lu Han, 2012. "A Spatial Look at Housing Boom and Bust Cycles," NBER Chapters, in: Housing and the Financial Crisis, pages 105-141 National Bureau of Economic Research, Inc.
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