The housing market is one of the most important markets in any economy, constituting typically both the most important class of consumption good and the most widely held investment asset. The origin of the Great Recession in the U.S. housing market has shown the importance of linkages between...

This paper shows that the capitalization of local amenities is effectively priced into land via a two-part pricing formula: a \ticket" price paid regardless of the amount of housing service consumed and a \slope" price paid per unit of services. We first show theoretically how tickets arise as...

Why are regional unemployment differentials in Europe so persistent if, as the wage curve literature demonstrates, there is no compensation in labour markets? We hypothesize that workers in high-unemployment regions are compensated in housing markets. Modelling regional unemployment...