The Production Function for Housing: Evidence from France
Pierre-Philippe Combes
- Fonction : Auteur
- PersonId : 16106
- IdHAL : pierre-philippe-combes
- ORCID : 0000-0001-7935-7149
- IdRef : 034631100
Laurent Gobillon
- Fonction : Auteur
- PersonId : 743074
- IdHAL : laurent-gobillon
- ORCID : 0000-0003-4849-7397
- IdRef : 105651346
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.
Domaines
Economies et finances| Format du dépôt | Fichier |
|---|---|
| Type de dépôt | Article dans une revue |
| Titre |
en
The Production Function for Housing: Evidence from France
|
| Résumé |
en
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.
|
| Auteur(s) |
Pierre-Philippe Combes
1, 2
, Gilles Duranton
3
, Laurent Gobillon
4, 5
1
ECON -
Département d'économie (Sciences Po)
( 226874 )
- 28 rue des Saints-Pères - 75007 Paris
- France
2
CEPR -
Center for Economic Policy Research
( 143559 )
- Royaume-Uni
3
University of Pennsylvania
( 115889 )
- 3451 Walnut Street, Philadelphia, PA 19104 | 215-898-5000
- États-Unis
4
PSE -
Paris School of Economics
( 301309 )
- 48 boulevard Jourdan 75014 Paris
- France
5
PJSE -
Paris Jourdan Sciences Economiques
( 578027 )
- 48 boulevard Jourdan 75014 Paris
- France
|
| Date de publication |
2021-10
|
| Langue du document |
Anglais
|
| Nom de la revue |
|
| Vulgarisation |
Non
|
| Comité de lecture |
Oui
|
| Audience |
Internationale
|
| Date de publication électronique |
2021-08-02
|
| Volume |
129
|
| Numéro |
10
|
| Page/Identifiant |
2766-2816
|
| Public visé |
Scientifique
|
| Domaine(s) |
|
| Mots-clés (JEL) |
|
| Projet(s) ANR |
|
| Mots-clés |
en
Housing, Production function
|
| DOI | 10.1086/715076 |
| UT key WOS | 000685517100001 |
Fichier principal
2021_combes_duranton_gobillon_the_production_function_of_housing_evidence_from_france_with_supplemental_material.pdf ( 908.53 Ko
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