Advanced Search
MyIDEAS: Login to save this article or follow this journal

Questions about the equivalence of market rents and user costs for owner occupied housing

Contents:

Author Info

  • Heston, Alan
  • Nakamura, Alice O.

Abstract

For modern nations, it is recognized as important that temporal and spatial variations in costs for comparable dwelling services are carefully measured. The costs of owner occupied as well as rental housing have important roles to play in both the consumer price index (CPI) and the System of National Accounts (SNA). The 1993 System of National Accounts (SNA93) specifies that a rental value of the housing stock should be included as part of the aggregates for personal consumption, personal income, income of proprietors and value added for the real estate industry. Yet, little attention has been devoted to an underlying commonality of practice: the implicit assumption that housing cost information for either renters or owner occupiers can be used for assessing movements over time and spatial differences in the cost of housing for both renters and owners, after allowing for differences regarding payment for taxes and certain ongoing expenses such as insurance and utilities. But in the real world, are the services that renters and owner occupiers get from their dwellings comparable? Also, for both renters and owner occupiers, are there place-related differences in the services they derive from their dwellings? And if so, what are the implications for official statistics making? These are the questions raised by the empirical results presented in this paper.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.sciencedirect.com/science/article/B6WJR-4WV15PR-4/2/e45ed67d793a8a34a04279484a1ceadc
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Elsevier in its journal Journal of Housing Economics.

Volume (Year): 18 (2009)
Issue (Month): 3 (September)
Pages: 273-279

as in new window
Handle: RePEc:eee:jhouse:v:18:y:2009:i:3:p:273-279

Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/622881

Related research

Keywords: Owner occupied housing Rental housing Consumer price index;

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Diewert, Erwin & Nakamura, Alice O., 2009. "Accounting for Housing in a CPI," Economics working papers erwin_diewert-2009-19, Vancouver School of Economics, revised 12 Mar 2009.
  2. Gerking, S.D. & Weirick, W.N., 1983. "Compensating differences and interregional wage differentials," Open Access publications from Tilburg University urn:nbn:nl:ui:12-4742787, Tilburg University.
  3. Summers, Robert & Heston, Alan, 1988. "A New Set of International Comparisons of Real Product and Price Levels Estimates for 130 Countries, 1950-1985," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 34(1), pages 1-25, March.
  4. Diewert, W E, 1974. "Intertemporal Consumer Theory and the Demand for Durables," Econometrica, Econometric Society, vol. 42(3), pages 497-516, May.
  5. Gerking, Shelby D & Weirick, William N, 1983. "Compensating Differences and Interregional Wage Differentials," The Review of Economics and Statistics, MIT Press, vol. 65(3), pages 483-87, August.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Garner, Thesia I. & Verbrugge, Randal, 2009. "Reconciling user costs and rental equivalence: Evidence from the US consumer expenditure survey," Journal of Housing Economics, Elsevier, vol. 18(3), pages 172-192, September.
  2. Diewert, W. Erwin & Nakamura, Alice O. & Nakamura, Leonard I., 2009. "The housing bubble and a new approach to accounting for housing in a CPI," Journal of Housing Economics, Elsevier, vol. 18(3), pages 156-171, September.
  3. Garrido-Yserte, Rubén & Mañas-Alcón, Elena & Gallo-Rivera, Maria Teresa, 2012. "Housing and cost of living: Application to the Spanish regions," Journal of Housing Economics, Elsevier, vol. 21(3), pages 246-255.
  4. Bettina Aten & Eric Figueroa & Troy Martin, 2011. "Notes on Estimating the Multi-Year Regional Price Parities by 16 Expenditure Categories: 2005-2009," BEA Working Papers 0071, Bureau of Economic Analysis.
  5. Matthew J Osborne & Nathan H. Miller, 2011. "Competition among Spatially Differentiated Firms: An Estimator with an Application to Cement," BEA Working Papers 0072, Bureau of Economic Analysis.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:eee:jhouse:v:18:y:2009:i:3:p:273-279. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.