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Who cares about relative status? A quantile approach to consumption of relative house size

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  • Susane Leguizamon

Abstract

I estimate the willingness to pay (WTP) to live in a house near neighbours with relatively smaller (or larger) houses using housing transaction data. I find that consumers in the 50th and 75th percentile are willing to pay the most for an increase in relative housing consumption while consumers in the lower percentiles and the highest percentile yield a smaller, and statistically insignificant, WTP. This gives evidence to popular media reports that the middle class values relative status the most.

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  • Susane Leguizamon, 2016. "Who cares about relative status? A quantile approach to consumption of relative house size," Applied Economics Letters, Taylor & Francis Journals, vol. 23(5), pages 307-312, March.
    • Handle: RePEc:taf:apeclt:v:23:y:2016:i:5:p:307-312
    DOI: 10.1080/13504851.2015.1066485
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    References listed on IDEAS

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