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The economics of style

Author

Listed:
  • Frans Schilder
  • Edwin Buitelaar

Abstract

In the last decades, many advanced economies have experienced the proliferation of design styles that refer to the past. Some have raised the hypothesis that the willingness to pay for these neo-traditional dwellings is larger than for dwellings with other, more 'modern' design styles. Theoretically this is possible in restricted housing markets with imperfect market competition. To our knowledge the existence of price effects for building styles has not been researched yet. This paper reports on a cross-sectional hedonic price analysis of building styles in the Netherlands. We find a significant price premium for neo-traditional architecture.

Suggested Citation

  • Frans Schilder & Edwin Buitelaar, 2015. "The economics of style," ERES eres2015_113, European Real Estate Society (ERES).
    • Handle: RePEc:arz:wpaper:eres2015_113
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    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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