CFDP 571

Housing Market with Indivisibility

Author(s): 

Publication Date: December 1980

Pages: 45

Abstract: 

In this paper we present a model of rental housing market in which houses are treated as indivisible commodities. We provide a recursive equation which determines a competitive equilibrium and argue that we can regard the competitive equilibrium as a representative of the set of all competitive equilibria. Using this representative equilibrium, we provide several propositions on comparative statics, that is, we consider how the competitive rents change when certain parameters of the model change.

See CFP: 571