Teaching the DiPasquale-Wheaton Model
Digital Object Identifier (DOI)
The DiPasquale-Wheaton (1992) model graphically determines rental price, asset price, newly constructed stock, and total stock in a real estate market. Despite its frequent use in academic research, few textbooks exposit the model. I conjecture this is due in part to the difficulty of deriving its comparative static results. I derive a supply curve that simplifies graphical analysis and perform a complete graphical comparative static analysis. Although the main objective of this paper is to encourage pedagogical usage of the model, an Appendix provides a mathematical derivation of the comparative static results, which has not heretofore appeared in the literature.
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Citation / Publisher Attribution
Journal of Real Estate Practice and Education, v. 20, issue 1, p. 1-25
Scholar Commons Citation
DeSalvo, Joseph S., "Teaching the DiPasquale-Wheaton Model" (2017). Economics Faculty Publications. 13.