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Showing papers on "Negative relationship published in 1973"


Journal ArticleDOI
TL;DR: In this article, the authors examine the economic influence of institutions of higher learning on local rental housing markets and make a test of the hypothesis that the presence of a college or university in a rental housing market area causes the price of housing services to be higher, cet. par., than it otherwise would be.
Abstract: THIS PAPER CONSIDERS the economic influence of institutions of higher learning on local rental housing markets. Specifically, a test is made of the hypothesis that the presence of a college or university in a rental housing market area causes the price of housing services to be higher, cet. par., than it otherwise would be. In the recent past, campus conflicts have arisen over the question of whether such an effect is present (1). With the expected continued expansion of many institutions of higher education, such external impacts of colleges and universities will require increased attention from both academic and non-academic policy makers. This paper attempts a rigorous examination of the question in order both to provide a guide for rational actions on the part of the involved parties and to contribute in some measure to the understanding of housing markets. The study consists of the development and testing of a model of rental housing service demand (2). In this model, demand is assumed to vary positively with income, the percentage of total population which is enrolled in a college or university, and population density. A negative relationship is assumed between demand and the percentage of total employment which is in manufacturing. The first relationship defines a positive income elasticity of demand for rental housing services (3). The manufacturing variable is assumed to measure the effects of such external diseconomies of spatially concentrated industry as air pollution, ugliness, and noise (4). The population density variable is included to reflect the influence of differing numbers of rental housing service buyers in a given market area (5). The variable of special interest in this study is the college and university variable. Colleges and universities affect local housing markets in a unique way through student demand for rental housing. Students are more frequently the continuous recipients of unmeasured income than are nonstudents. Thus, it is believed that the college and university variable expresses the impact of this unmeasured component of student income which tends to increase student demand relative to non-student demand. Unmeasured student income consists of transfers from outside the local

17 citations