Course outline:
Introduction (3h/R.Lecat)
- The triple dimension of Housing
- A joint product of land and structures. Land is fixed, structures are produced
- A highly differentiated consumption good. The highest expenditure share
- A capital good (Investment, Depreciation, renting vs owning)
- International comparisons
Chap 1: The construction of housing price index (3h/A. Trannoy)
- Models: Hedonic Model (Sherwin Rosen), Repeated Sales (Case and Shiller)
- Empirics: The construction of Notaires-Insee Price index
- How to use the hedonic model to test the success of an urban renewal policy
Chap 2: Can we regulate the dynamics of housing price through macroprudential policies (9h/R.Lecat)
2.1 Housing price, cycles and financial stability: the transmission of housing price cycles to the financial sector and the real economy (Kiyotaki-Moore; Campbell and Cocco)
2.2 Housing price bubble
- Housing as a market: the stock-flow model (Di Pasquale and W.Wheaton)
- Housing as an asset: financial valuation models
- Early warning tools
- Examples of Housing price bubbles
2.3 Macroprudential policy tools (Bennani et al.)
- Monetary policy and macroprudential policy
- Demand-oriented
- Supply-oriented
- Impact channels and estimates (Avouyi-Dovi et al.)
Chap 3 : What are the impact of tax and transfer policies on housing market outcomes? (3h/A. Trannoy)
- Housing supply is fixed at short run. How elastic at long run?
- The role of land-use policy
- Housing benefits and Rents
- Rent control
- Capitalization of taxes in land values
- Inequality of housing conditions and housing cost of living (Albouy, Bérard-Trannoy)
Chap 4 : Segregation in the City: The sorting of people (3h/A.Trannoy)
- Land location as an auction: The monocentric Alonso Model
- Extension Amenities Bruckner&Thisse&Zenou
- The influence of public transportation on location
- Can social housing mitigate segregation?
Chap 5: Do people (rent) follow jobs or do job (wage) follow people (rent)? (3h/A. Trannoy)
- The Rosen-Roback model
- Empirical evidence: Moretti, Albouy,Davis
- Can territorial policies be efficient to change the spatial equilibrium?