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К Теории Рынка Жилья: Модель Дифференциации Цен На Квартиры В Зависимости От Их Готовности
[To the theory of housing markets: a model of differentiation of prices for apartments depending on their readiness]

Author

Listed:
  • Polterovich, Victor
  • Ilinskiy, Dmitry

Abstract

We propose a model of a firm that differentiates prices for finished and unfinished housing. The demand for housing is formed by consumers solving a dynamic utility maximization problem. The proposed formulation of this problem takes into account the fact that the purchased apartment may be available for consumption only after a certain time. In this case, at the moment of receiving the ready-made apartment the consumer gets rid of the need to pay the rent for the apartment in which he previously lived. Numerical calculations based on the data typical for the Moscow housing market have shown that relatively poor segments of the population prefer to pay for the apartment when it is not ready. At the same time the lower the rent rate, the higher the price of unfinished apartments and the relatively lower the share of consumers who prefer to buy them

Suggested Citation

  • Polterovich, Victor & Ilinskiy, Dmitry, 2021. "К Теории Рынка Жилья: Модель Дифференциации Цен На Квартиры В Зависимости От Их Готовности [To the theory of housing markets: a model of differentiation of prices for apartments depending on their readiness]," MPRA Paper 110947, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:110947
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    File URL: https://mpra.ub.uni-muenchen.de/110947/1/MPRA_paper_110947.pdf
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    References listed on IDEAS

    as
    1. Bagliano, Fabio-Cesare & Bertola, Giuseppe, 2007. "Models for Dynamic Macroeconomics," OUP Catalogue, Oxford University Press, number 9780199228324.
    2. Chah, Eun Young & Ramey, Valerie A & Starr, Ross M, 1995. "Liquidity Constraints and Intertemporal Consumer Optimization: Theory and Evidence from Durable Goods," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 27(1), pages 272-287, February.
    3. Dixit, Avinash K., 1990. "Optimization in Economic Theory," OUP Catalogue, Oxford University Press, edition 2, number 9780198772101.
    4. Deaton, Angus, 1991. "Saving and Liquidity Constraints," Econometrica, Econometric Society, vol. 59(5), pages 1221-1248, September.
    5. Tullio Jappelli & Marco Pagano, 1994. "Saving, Growth, and Liquidity Constraints," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 109(1), pages 83-109.
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    Keywords

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    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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