Seminario Applied

Norbert Czinkan

Universidad de Alicante


Seminar 3 – 14:30


This paper investigates the effect of population and its change change on housing prices from an urban economic point of view. Using Hungarian settlement level data we found that 10 percentage point higher expected population growth raises housing prices by 0.02-0.08% upon different regional specifications. Not just the changes but the magnitude of the population matters: the elasticity of city size with respect to housing prices varies from 0.065% to 0.21%. As predicted by the Ricardian rent theory, the location is also a key factor in determining housing prices: living one more minute further away from the center results in 0.02% cheaper housing

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