The Dynamics of House Price Responsiveness and Locational Sorting: Evidence from Air Quality Changes
Document Type
Article
Date of Original Version
3-6-2015
Abstract
Despite extensive use of housing data to reveal valuation of non-market goods, the process of house price adjustment remains vague. Using the restricted access American Housing Survey, a high-frequency panel of prices, turnover, and occupant characteristics, this paper examines the time path of prices and preference-based sorting in response to air quality changes caused by differential regulatory pressure from the 1990 Clean Air Act Amendments. The results suggest that owner-occupied units capitalize changes quickly, whereas rent prices lag behind amenity levels. The delayed but sharp rent response temporally coincides with evidence of sorting, indicating a strong link between location choices and price dynamics.
Publication Title, e.g., Journal
Regional Science and Urban Economics
Citation/Publisher Attribution
Lang, Corey. (2015). "The dynamics of house price responsiveness and locational sorting: Evidence from air quality changes." Regional Science and Urban Economics. Available at: http://dx.doi.org/10.1016/j.regsciurbeco.2015.02.005
Author Manuscript
This is a pre-publication author manuscript of the final, published article.
Terms of Use
This article is made available under the terms and conditions applicable
towards Open Access Policy Articles, as set forth in our Terms of Use.