IDEAS home Printed from https://ideas.repec.org/a/bla/reesec/v18y1990i1p1-21.html
   My bibliography  Save this article

Modeling and Computing Transactions Costs for Purchasers of Housing Services

Author

Listed:
  • Allen C. Goodman

Abstract

This paper models, as equilibrium behavior, buyers' behaviors under transactions costs and market failure constraints. It derives equilibrium conditions and it shows how they differ from unconstrained models. Standard utility and cost parameters are then used to estimate the economic costs of the constraints, which may be interpreted, at the margin, as the transactions costs of moving. If transactions costs are greater than the economic costs of the constraints, the household remains in a residence, even in response to changed price and income expectations. Changes in expected prices and incomes lead to changed housing demand even when the household cannot adjust housing consumption between periods. These findings have implications for empirical work with both cross-section and panel data sets. Copyright American Real Estate and Urban Economics Association.

Suggested Citation

  • Allen C. Goodman, 1990. "Modeling and Computing Transactions Costs for Purchasers of Housing Services," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 18(1), pages 1-21.
  • Handle: RePEc:bla:reesec:v:18:y:1990:i:1:p:1-21
    as

    Download full text from publisher

    File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/1540-6229.00506
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Friedman, Joseph H. & Weinberg, Daniel H., 1982. "The Economics of Housing Vouchers," Elsevier Monographs, Elsevier, edition 1, number 9780122683602.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Han, Lu, 2008. "Hedging house price risk in the presence of lumpy transaction costs," Journal of Urban Economics, Elsevier, vol. 64(2), pages 270-287, September.
    2. Goodman, Allen C., 2003. "Following a panel of stayers: Length of stay, tenure choice, and housing demand," Journal of Housing Economics, Elsevier, vol. 12(2), pages 106-133, June.
    3. Chung, Eui-Chul & Haurin, Donald R., 2002. "Housing choices and uncertainty: the impact of stochastic events," Journal of Urban Economics, Elsevier, vol. 52(2), pages 193-216, September.
    4. Quigley, John M., 2002. "Transactions Costs and Housing Markets," Berkeley Program on Housing and Urban Policy, Working Paper Series qt6pz8p6zt, Berkeley Program on Housing and Urban Policy.
    5. Goodman, Allen C., 2002. "Estimating Equilibrium Housing Demand for "Stayers"," Journal of Urban Economics, Elsevier, vol. 51(1), pages 1-24, January.
    6. Haurin, Donald R. & Chung, Eui-Chul, 1998. "The Demand for Owner-Occupied Housing: Implications from Intertemporal Analysis," Journal of Housing Economics, Elsevier, vol. 7(1), pages 49-68, March.

    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:bla:reesec:v:18:y:1990:i:1:p:1-21. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum). General contact details of provider: http://edirc.repec.org/data/areueea.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.