Glaeser, Edward L.; Gyourko, Joseph; Morales, Eduardo; … - In: Journal of Urban Economics 81 (2014) C, pp. 45-56
A dynamic linear rational equilibrium model in the tradition of Alonso, Rosen and Roback is consistent with many outstanding stylized facts of housing markets. These include: (a) that the markets are local in nature; (b) that construction persistence is fully compatible with mean reversion in...