Migration as Driving Force for the Dynamics of Housing Rent
The goal of this paper is to link models of urban formations (urban studies) with models of housing rent. While housing market models are essentially static, model of urban formation is presented in dynamic set up. The driving force for dynamics comes from migration theory and includes chain migration model. In economics and social studies, we often observe collective phenomena that produce externality effects and that cannot be described by classical market theory. On one hand, we observe mass migration to urban agglomerations despite congestion effect. On the other hand, we observe such phenomena as housing bubbles that can lead to huge macroeconomic consequences (like financial crisis of 2008 driven by explosion of the US bubble, or contemporary recession of Spain also driven by housing bubble). Migration has rational and chain components. Due to chain effect, migration inflow will be positive and high when city passes its optimal level. Housing price and construction sector will both grow at this stage although utility of citizens already decline. Thus, chain migration is de-stabilizer of the economy and one of sources for bubble emergence. Combination of city dynamics with the static theory of urban and housing economics makes it necessary to understand the issue of ownership in land rent. This is a complex collective phenomenon with externalities.
|Date of creation:||Sep 2011|
|Date of revision:|
|Contact details of provider:|| Postal: Welthandelsplatz 1, 1020 Vienna, Austria|
Web page: http://www.ersa.org
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Y. Yegorov, 2003. "Dynamics of Interest Rate and Spanish Housing Markets," ERES eres2003-301, European Real Estate Society (ERES).
- Merce Carreras-i-Solanas & Oscar Mascarilla-i-Miro & Yuri Yegorov, 2004.
"The evolution and the relationship of house prices and rents in Barcelona, 1970-2002,"
International Journal of Housing Policy,
Taylor & Francis Journals, vol. 4(1), pages 19-56.
- Mercè Carreras-i-Solanas & Oscar Mascarilla-i-Miró & Yuri Yegorov, 2004. "The evolution and the relationship of house prices and rents in Barcelona, 1970-2002," European Journal of Housing Policy, Taylor and Francis Journals, vol. 4(1), pages 19-56, January.
- repec:arz:wpaper:eres2003_301 is not listed on IDEAS
- Christian Helmenstein & Yury Yegorov, 1994.
"The dynamics of migration in the presence of chains,"
Economics Working Papers
86, Department of Economics and Business, Universitat Pompeu Fabra.
- Helmenstein, Christian & Yegorov, Yury, 2000. "The dynamics of migration in the presence of chains," Journal of Economic Dynamics and Control, Elsevier, vol. 24(2), pages 307-323, February.
When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa11p49. 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: (Gunther Maier)
If references are entirely missing, you can add them using this form.