An Analysis of Housing Expenditure Using Semiparametric Models and Panel Data
AbstractIn this paper we model expenditure on housing for owners and renters by means of endogenous switching regression models for panel data. We explain the share of housing in total expenditure from a household specific effect, family characteristics and total expenditure, where the latter is allowed to be endogenous. We consider both random and fixed effects panel data models. We compare estimates for the random effects model with estimates for the linear panel data model in which selection only enters through the fixed effects and with estimates allowing for fixed effects and a more general type of selectivity. Differences appear to be substantial. The results imply that the random effects model as well as the linear panel data model are too restrictive.
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Bibliographic InfoPaper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 1997-14.
Date of creation: 1997
Date of revision:
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Web page: http://center.uvt.nl
sample selection; Engel curves; semiparametric models; panel data;
Other versions of this item:
- Charlier, Erwin & Melenberg, Bertrand & van Soest, Arthur, 2001. "An analysis of housing expenditure using semiparametric models and panel data," Journal of Econometrics, Elsevier, vol. 101(1), pages 71-107, March.
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
- R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
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