An equilibrium-econometric analysis of rental housing markets with indivisibilities

Mamoru Kaneko, Tamon Ito

    Research output: Chapter in Book/Report/Conference proceedingChapter

    Abstract

    We develop a theory of an equilibrium-econometric analysis of rental housing markets with indivisibilities. It provides a bridge between a (competitive) market equilibrium theory and a statistical/econometric analysis. The listing service of apartments provides the information to both economic agents and an econometric analyzer: each economic agent uses a small part of the data from the service for his economic behavior, and the analyzer uses them to estimate the market structure. It is argued that the latter may be done by assuming that the economic agents take the standard price-taking behavior. We apply our theory to the data in the rental housing markets in the Tokyo area, and examine the law of diminishing marginal utility for household. It holds strictly with respect to the consumption, less with commuting time-distance, and much less with the sizes of apartments.

    Original languageEnglish
    Title of host publicationSpringer Optimization and Its Applications
    PublisherSpringer International Publishing
    Pages193-223
    Number of pages31
    Volume118
    DOIs
    Publication statusPublished - 2017

    Publication series

    NameSpringer Optimization and Its Applications
    Volume118
    ISSN (Print)19316828
    ISSN (Electronic)19316836

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    Keywords

    • Competitive equilibrium
    • Discrepancy measure
    • Indivisibilities
    • Law of diminishing marginal utility
    • Rental housing market

    ASJC Scopus subject areas

    • Control and Optimization

    Cite this

    Kaneko, M., & Ito, T. (2017). An equilibrium-econometric analysis of rental housing markets with indivisibilities. In Springer Optimization and Its Applications (Vol. 118, pp. 193-223). (Springer Optimization and Its Applications; Vol. 118). Springer International Publishing. https://doi.org/10.1007/978-3-319-52654-6_9