a housing supply function for iran

a housing supply function for private sector has been estimated for the period of 1985-1999. the model was specified, using lucas supply theory and by including internal adjustment costs in producer's decision f or production or inv estment. the distin ctive feature of this model is the utilization. of investment role in housing sector similar to other factors in production function. the results indicate that the supply of that period was more subject to two main [actors. i.e. housing prices and opportunity costs. the price elasticity of housing supply and the elasticity of housing supply with respect to opportunity cost have been calculated as 3.96 and - 3.5 respectively. the low sensitivity of supply with respect to other factors such as wages, may be explained as du e to relatively low growth of wages compared to the growth of general price level and housing prices and high supply of unskilled workers. the low elasticity of housing supply with respect to financial credit is du e to insufficient ceiling of financial credit compared to the cost of purchasing and production of housing