IDEAS home Printed from
   My bibliography  Save this article

Specification Error in the Estimation of the Elasticity of Substitution between Capital and Land in residential Construction


  • Stover, Mark Edward


Previous estimates of the elasticity of substitution between capital and land ignore the role of labor and financing in the production function for housing. In the case of cross-section data between cities, time-series data, or pooled cross-section and time series data, the exclusion of one or both variables may lead to specification error. This study tests the hypothesis that the exclusion of these variables does not bias the estimate of the elasticity of substitution between capital and land. The methodology employs data for U.S. cities from 1973 to 1982 to estimate translog cost functions. Exclusion of financing biases the elasticity estimate upward.

Suggested Citation

  • Stover, Mark Edward, 1990. "Specification Error in the Estimation of the Elasticity of Substitution between Capital and Land in residential Construction," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 24(2), pages 125-132.
  • Handle: RePEc:spr:anresc:v:24:y:1990:i:2:p:125-32

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item


    Access and download statistics


    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:spr:anresc:v:24:y:1990:i:2:p:125-32. 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: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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.