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The Inventory–Sales Relationship in the Market for New Single‐Family Homes
Author(s) -
Falk Barry,
Lee BongSoo
Publication year - 2004
Publication title -
real estate economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.064
H-Index - 61
eISSN - 1540-6229
pISSN - 1080-8620
DOI - 10.1111/j.1080-8620.2004.00106.x
Subject(s) - stylized fact , inventory investment , perpetual inventory , investment (military) , economics , investment decisions , measure (data warehouse) , inventory theory , business , inventory control , microeconomics , econometrics , operations management , macroeconomics , production (economics) , computer science , politics , political science , law , database
Time series methods are applied to study monthly inventory and sales dynamics in the U.S. market for new single‐family homes. The inventory measure used is the inventory of unsold, new single‐family homes, regardless of the stage of construction. Stylized facts regarding inventory, sales, the inventory–sales ratio and the implied series of speculative housing starts are produced. Implications for structural models of housing supply and the relationship of inventory investment in this market to economy‐wide inventory investment are considered. Finally, innovation accounting methods are applied to a structural VAR to study the responses of inventories and sales to permanent and transitory shocks.