TITLE:
A Model Study on the Effect of Housing Supply Elasticity on Labor Market
AUTHORS:
Yihui Zhong
KEYWORDS:
Housing Supply Elasticity, Labor Markets, Productivity, Model Study
JOURNAL NAME:
Open Journal of Business and Management,
Vol.5 No.3,
July
20,
2017
ABSTRACT: We develop a model of wage and rent determination that features spillovers from export-sector shocks to the market for locally produced (nontraded) goods and services, mediated by housing supply elasticities. Our model can explain stylized facts such as “gentrification” in major cities driven by shocks to industries in which those cities specialize.