analysis with respect to housing markets in general and urban housing markets in particular. The majority of the material … main thrust of the chapter is to clarify how the particular attributes of housing, especially those of durability and … locational specificity, have been introduced into microeconomic models of housing. On the demand side analysis concentrates on …

Much of the literature on the effect of housing wealth on consumption has been embedded in a simple life-cycle model in … which housing price changes work as a "wealth effect". In such models, windfall gains in housing always lead to positive … changes in consumption. However, this might be a fallacy of composition. Such models ignore that changes in housing wealth …