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IEB10-28_Molloy+Shan.pdf (526.61 KB)

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Working paper

Publication date

2010

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cc-by-nc-nd, (c) Molloy et al., 2010
Please use this identifier to cite or link to this item: https://hdl.handle.net/2445/116759

The effect of gasoline prices on household location

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Abstract

By raising commuting costs, an increase in gasoline prices should reduce the demand for housing in areas far from employment centers relative to locations closer to jobs. Using annual panel data on a large number of ZIP codes and municipalities from 1981 to 2008, we find that a 10 percent increase in gas prices leads to a 10 percent decrease in construction in locations with a long average commute relative to other locations, but to no significant change in house prices. Thus, the supply response may prevent the change in housing demand from capitalizing in house prices.

Subject

Gasolina, Política de l'habitatge, Anàlisi de dades de panel

Subject (English)

Gasoline, Housing policy, Panel analysis

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IEB (Institut d’Economia de Barcelona) – Working Papers

Citation

MOLLOY, Raven and SHAN, Hui. The effect of gasoline prices on household location. IEB Working Paper 2010/28. [consulted: 14 of August of 2026]. Available at: https://hdl.handle.net/2445/116759

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