Comments on Chapters Nine and Ten
Cohen, Stephen P.; Carroll, Bill
Many of the contributors to this volume suggest in their studies that exogenous environmental change in the economic system finds its way into the housing market. Measurement of the impact of that change on the housing market provides useful information on the nature of the change; and, in particular cases, this information may be all that we have for evaluation of alternative public policies. The majority of the studies deal with the need to develop general equilibrium models for interpretation and measurement of the property value reaction (the terms "property" and "housing" are used synonymously). This ability is required if we are to discern from the morass of all the conflicting effects of simultaneous determinants of property values the rather minute effect of a single incremental change. Only then can cross-sectional modeling (which has the data simplicity of dealing with only a single point in time) be satisfactory. Most of the studies dealing with general equilibrium do, in fact, utilize the cross-sectional methodology as a basis for empirical technique
housing market; real estate; environmental change; public policies
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