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Urban Studies, Vol. 22, No. 6, 543-549 (1985)
DOI: 10.1080/00420988520080901
© 1985 Urban Studies Journal Limited

Expectations and Urban Housing Prices

John F. McDonald

Department of Economics, University of Illinois, Chicago, Illinois

This paper presents a simple model of price expectations and urban housing prices. The empirical results for a sample of houses sold in the city of Chicago during 1970-1972 indicate that the expectation of nominal price increase, estimated as an extrapolation of past price increases in the neighborhood, have a significant impact on the current price.


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R. S. Phillips
Unravelling the Residential Rent-Value Puzzle: An Empirical Investigation
Urban Stud, December 1, 1988; 25(6): 487 - 496.
[Abstract] [PDF]