Title: Factor costs and factor use: substitution among urban land and capital inputs in the production of single-family housing
Abstract: This paper uses cost functions to test the hypothesis of constancy of the elasticity of substitution among land and capital inputs in the production of single-family housing. The findings suggest that the substitution parameter varies over the range of the sample. The hypothesis of homotheticity in the production is also rejected. This implies that the CES and Cobb–Douglas production functions are not suitable for urban housing production modelling. The analysis has been carried out by imposing much weaker restrictions as a part of the maintained hypotheses than has been the case in the recent literature.
Publication Year: 1986
Publication Date: 1986-03-01
Language: en
Type: article
Indexed In: ['crossref']
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