MSA-level estimates of a housing supply schedule must offer a solution to the twin problems of simultaneity and stationarity that plague the time series data for local housing prices and stock. An Error Correction Model (ECM) is shown to provide a solution to stationarity, but not simultaneity....

This research examines housing market price efficiency across locations within a metropolitan market the hallmark of hedonic theory. Our innovation is to introduce temporal as well as spatial considerations of price efficiency. In an efficient market, the price (level) of housing must not only...