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The demand for housing in Spain: an endogenous switching regression analysis

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  • Justo Manrique
  • Kalu Ojah

Abstract

Housing demand in Spain has been studied by using data disaggregated into primary and secondary housing demands. It is found that demand for both types of housing area, indeed, related and that they are both considered necessities; thus, suggesting that their consumption ought to be modelled as a joint decision. Moreover, it is found that traditional determinants of housing demand affect primary and secondary home demands differently. These differences are attributable to the following economic rationales: need for asset holdings diversifications, relative high cost of home ownership versus rental in choice locations, and differences in land demand intensity across regions. In sum, the findings suggest that policy makers in Spain, contrary to popular beliefs, must consider secondary homes an integral part of households' accommodation need.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 35 (2003)
Issue (Month): 3 ()
Pages: 323-336

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Handle: RePEc:taf:applec:v:35:y:2003:i:3:p:323-336

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References

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Cited by:
  1. Ming-Yuan Chen, 2006. "Managerial ownership and firm performance: an analysis using switching simultaneous-equations models," Applied Economics, Taylor & Francis Journals, vol. 38(2), pages 161-181.
  2. Narayanan, Sudha, 2014. "Profits from participation in high value agriculture: Evidence of heterogeneous benefits in contract farming schemes in Southern India," Food Policy, Elsevier, vol. 44(C), pages 142-157.
  3. Daniel Fernández-Kranz & Mark Hon, 2006. "A Cross-Section Analysis of the Income Elasticity of Housing Demand in Spain: Is There a Real Estate Bubble?," The Journal of Real Estate Finance and Economics, Springer, vol. 32(4), pages 449-470, June.
  4. Sudha Narayanan, 2012. "The Heterogeneous welfare impacts of participation in contract farming schemes: Evidence from Southern India," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2012-019, Indira Gandhi Institute of Development Research, Mumbai, India.
  5. Nestor Gandelman, 2008. "Female-Headed Households and Homeownership in Latin America," Research Department Publications 3252, Inter-American Development Bank, Research Department.
  6. Nestor Gandelman, 2008. "Hogares encabezados por mujeres y propiedad de la vivienda en América Latina," Research Department Publications 3253, Inter-American Development Bank, Research Department.
  7. Marion Kohler & Anthony Rossiter, 2005. "Property Owners in Australia: A Snapshot," RBA Research Discussion Papers rdp2005-03, Reserve Bank of Australia.

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