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Urban Structure and Housing Prices: Some Evidence from Australian Cities *
Author(s) -
KULISH MARIANO,
RICHARDS ANTHONY,
GILLITZER CHRISTIAN
Publication year - 2012
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.2012.00829.x
Subject(s) - zoning , economics , economic geography , empirical evidence , empirical research , urban structure , urban planning , engineering , civil engineering , epistemology , philosophy
This article studies determinants of some aspects of the structure of cities, including density and the price of land and housing. We use a version of the Alonso‐Muth‐Mills model, calibrated to broadly match some of the features of a representative large city. Although the calibrated model omits many real‐world features, it can nonetheless be used to explore the impact of factors such as: (i) the provision of transport infrastructure; (ii) zoning policies that limit housing density; (iii) frictions on the production of housing; and (iv) population size. The empirical section of the article shows that the model is consistent with some empirical regularities for large Australian cities. The results of the article draw attention to structural factors that may have contributed to developments in the Australian housing market in recent years.