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A Selection Model of Hedonic House Values and Rents

Author

Listed:
  • Lars Nesheim

    (University College London)

  • Florian Oswald

    (UCL)

  • Jonathan Halket

    (University of Essex)

Abstract
We use a large repeated cross-section of houses to estimate a selection model of the supply of owner-occupied and rental housing. We find that physical characteristics and unobserved heterogeneity and not location are important for selection. We interpret this as strong evidence in favor of contracting frictions in the rental market relating to maintenance and modification of a dwellings physical characteristics.

Suggested Citation

  • Lars Nesheim & Florian Oswald & Jonathan Halket, 2015. "A Selection Model of Hedonic House Values and Rents," 2015 Meeting Papers 961, Society for Economic Dynamics.
    • Handle: RePEc:red:sed015:961
    as

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    References listed on IDEAS

    as
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