What is exclusionary zoning? Provide an example.

Economics of Cities

Part Two: Short Answer — Do any 10 of 11— 60 points

1. We know that housing is a unique commodity because (1) moving costs are relatively high and because (2) racial discrimination and segregation are prevalent in the housing market. List 3 other reasons that make housing unique.

2. Put the HPF in slope form?

3. What’s the difference between dwelling characteristics and site characteristics? Give examples of each.

4. When a property becomes unprofitable the landlord has three options at her disposal. She can board up, convert or abandon the property. When does she employ each of these strategies?

5. What demand-side housing program has the government put in place to address the housing needs of low-income people? Explain how it works.

6. Explain the difference between – and –.

7. While holding everything else constant, describe the bid rent function for a large household in comparison with that for a small household.

8. Discuss the elasticity of housing supply.

9. What are the two basic features of the filtering model?

10. What is exclusionary zoning? Provide an example.

11. The winners from rent control are the consumers who manage to get one of the rent-controlled dwellings at the artificially low price. The gains of the occupants are diminished by three responses to rent control. Discuss two of them.