@article{Constraints:1643,
      recid = {1643},
      author = {Bulusu, Narayan and Duarte, Jefferson and Vergara-Alert,  Carles},
      title = {Booms and Busts in House Prices Explained by Constraints  in Housing Supply},
      address = {2013},
      pages = {1 online resource (iii, 40 pages)},
      abstract = {We study the importance of supply constraints in  explaining the heterogeneity in house price cycles across  geographies in the United States. Comparing the equilibrium  house price generated with and without supply constraints  in a representative-agent model under irreversibility of  housing investment, we derive a relationship between  housing returns and changes in supply constraints and  determinants of housing demand. Our empirical analysis  shows that supply constraints play an important role in  Metropolitan Statistical Areas (MSAs) with boom-and-bust  behavior. We estimate that, in 19 of the largest MSAs in  the United States, supply constraints contributed 25% to  the dramatic rise in house prices from 2000 to 2006, and  17% to their sharp fall from 2006 to 2010.},
      url = {http://www.oar-rao.bank-banque-canada.ca/record/1643},
      doi = {https://doi.org/10.34989/swp-2013-18},
}