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Article Dans Une Revue Journal of Political Economy Année : 2021

The Production Function for Housing: Evidence from France

Résumé

We propose a new nonparametric approach to estimate the production function for housing. Our estimation treats output as a latent variable and relies on a first-order condition for profit maximization combined with a zero-profit condition. More desirable locations command higher land prices and, in turn, more capital to build houses. For parcels of a given size, we compute housing production by summing across the marginal products of capital. For newly built single-family homes in France, the production function for housing is close to constant returns and is well, though not perfectly, approximated by a Cobb-Douglas function with a capital elasticity of 0.65.
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Dates et versions

halshs-03342578 , version 1 (22-12-2021)

Identifiants

  • HAL Id : halshs-03342578 , version 1
  • DOI : 10.1086/715076
  • WOS : 000685517100001

Citer

Pierre-Philippe Combes, Gilles Duranton, Laurent Gobillon. The Production Function for Housing: Evidence from France. Journal of Political Economy, 2021, 129 (10), pp.2766-2816. ⟨10.1086/715076⟩. ⟨halshs-03342578⟩
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