American Economic Review
ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)
Housing Assignment with Restrictions: Theory and Evidence from Stanford University's Campus
American Economic Review
vol. 104,
no. 5, May 2014
(pp. 67–72)
Abstract
This paper studies housing markets where a subset of houses in a restricted area is available exclusively to a subset of "eligible" buyers. An empirical part shows that houses on Stanford campus (available only to faculty) trade at substantial discounts to comparable houses off campus. The theoretical part describes an assignment model with heterogeneous houses and buyers which predicts such discounts if the matchup of quality and buyer pools is sufficiently different inside versus outside the restricted area. The restriction can distort allocations by making eligible buyers choose either higher or lower qualities than ineligible buyers with the same characteristics.Citation
Landvoigt, Tim, Monika Piazzesi, and Martin Schneider. 2014. "Housing Assignment with Restrictions: Theory and Evidence from Stanford University's Campus." American Economic Review, 104 (5): 67–72. DOI: 10.1257/aer.104.5.67Additional Materials
JEL Classification
- I23 Higher Education; Research Institutions
- R21 Urban, Rural, Regional, Real Estate, and Transportation Economics: Housing Demand
- R31 Housing Supply and Markets
- R38 Production Analysis and Firm Location: Government Policy