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Graphical Assessment of Housing Market Models

Author

Listed:
  • Paul A. Longley

    (Department of Town Planning, UWIST, Colum Drive, Cardiff, CF1 3EU, UK)

  • Richard Dunn

    (Department of Geography, University of Bristol. University Road, Bristol, BS8 ISS, UK)

Abstract

This paper considers the selection of appropriate functional forms for discrete choice models of housing market behaviour. It is argued that uncritical adoption of linear or log-linear forms may be inappropriate, and that Box-Tukey transformations are unnecessarily cumbersome and mechanistic devices in the search for more general functional forms. An alternative graphical assessment procedure based on partial residuals is first presented and is then applied to an empirical case study of tenure choice in London, England. Results are compared with a Box-Tukey analysis, and suggest that the graphical procedure constitutes an important exploratory modelling tool. Graphical functional form evaluation is thus seen to add important insights to analysis of the policy-dominated United Kingdom housing market.

Suggested Citation

  • Paul A. Longley & Richard Dunn, 1988. "Graphical Assessment of Housing Market Models," Urban Studies, Urban Studies Journal Limited, vol. 25(1), pages 21-33, February.
    • Handle: RePEc:sae:urbstu:v:25:y:1988:i:1:p:21-33
    DOI: 10.1080/00420988820080021
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    References listed on IDEAS

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    4. Dunn, R. & Longley, P. & Wrigley, N., 1987. "Graphical procedures for identifying functional form in binary discrete choice models : A Case Study of Revealed Tenure Choice," Regional Science and Urban Economics, Elsevier, vol. 17(1), pages 151-167, February.
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    7. Li, Mingche M, 1977. "A Logit Model of Homeownership," Econometrica, Econometric Society, vol. 45(5), pages 1081-1097, July.
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