University of Isfahan Urban Economics 2588-4867 1 1 2016 12 21 An Estimation of Housing Supply Function for Urban and Rural areas in Isfahan province (1991-2011) An Estimation of Housing Supply Function for Urban and Rural areas in Isfahan province (1991-2011) 37 53 22103 10.22108/ue.2016.22103 FA Rahman Khoshakhlagh Department of Economics, Faculty of Administrative Sciences & Economics, University of Isfahan, Isfahan, Iran Shekoofeh Farahmand Department of Economics, Faculty of Administrative Sciences & Economics, University of Isfahan, Isfahan, Iran Salman Gharakhani Department of Economics, Faculty of Administrative Sciences & Economics, University of Isfahan, Isfahan, Iran Sasan Gharakhani Dehsorkhi Department of Economics, Faculty of Administrative Sciences & Economics, University of Isfahan, Isfahan, Iran Journal Article 2015 10 27 In the housing market, the supply of residential units is affected by factors such as workforce wages, building materials’ prices, financial credits and etc. Besides these factors, unique features of housing such as durablity, being heterogenous and being immovable can influence the supply. Moreover, residential units can be considered to have the quality of investment as well as the quality of consumption. In this paper, besides considering a production function which includes investment, the effects of opportunity costs on deciding for investment is captured by the model according to the modern theories in the housing market and using Locus supply approach  and adjustment costs. In order to be able to capture the effect of unique features of housing, this function has been estimated for different region of the province. The result obtained from the estimation of the supply function in different areas, reveals that the housing supply in these regions is mostly influenced by the supply of land, and the elasticities of the supply of wages, financial credit supplies and housing prices are slow. In the housing market, the supply of residential units is affected by factors such as workforce wages, building materials’ prices, financial credits and etc. Besides these factors, unique features of housing such as durablity, being heterogenous and being immovable can influence the supply. Moreover, residential units can be considered to have the quality of investment as well as the quality of consumption. In this paper, besides considering a production function which includes investment, the effects of opportunity costs on deciding for investment is captured by the model according to the modern theories in the housing market and using Locus supply approach  and adjustment costs. In order to be able to capture the effect of unique features of housing, this function has been estimated for different region of the province. The result obtained from the estimation of the supply function in different areas, reveals that the housing supply in these regions is mostly influenced by the supply of land, and the elasticities of the supply of wages, financial credit supplies and housing prices are slow. https://ue.ui.ac.ir/article_22103_f4ba98871cd973a3be88bc3d2b914ca7.pdf