The impact of residential mobility and competitive housing markets on long-run growth is examined using a two-sector general equilibrium overlapping-generations model in continuous time. There is an infinity of agents with finite lives who adjust their housing consumption by moving, which is...

This paper contributes to the growing literature that identifies and measures the impact of social context on individual economic behavior. We develop a model of housing demand with neighborhood e®ects and neighborhood choice. Modelling neighborhood choice is of fundamental importance in...

Theoretical work suggests that families live in owner-occupied housing if their investment demand for housing exceeds their consumption demand for housing. Using household data from the 1983 Survey of Consumer Finances, the authors test this theory by estimating an ordered probit model of...