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Geographic Heterogeneity in Housing. Evidence from Spain

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Author Info
Raquel Arévalo Tomé
José María Chamorro Rivas
Abstract

This article offers an empirical analysis of geographical differences in the characteristics of housing in the different provinces of Spain. The study employs multiple correspondence analysis to derive a housing index, in line with Arévalo (1999). While Arévalo used only structural variables, this research also includes proxy variables for access to services derived from the location of the living unit. A readily interpretable index is thus created, which measures the level of internal and external services that a living unit (house or apartment) provides for its occupiers. The results confirm that characteristics derived from location are complementary to structural characteristics of the living unit itself (housing services). Moreover, with the addition of location variables, the new housing index shows: (i) increased correlation with observed rental and house prices, and (ii) a more realistic view of geographical differences in the level of services of Spanish housing. The study contributes new housing indicators that are easily applicable, for example, in studies on household quality of life, social exclusion, and poverty.

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Paper provided by FEDEA in its series Studies on the Spanish Economy with number 203.

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Handle: RePEc:fda:fdaeee:203

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  1. Michel Tenenhaus & Forrest Young, 1985. "An analysis and synthesis of multiple correspondence analysis, optimal scaling, dual scaling, homogeneity analysis and other methods for quantifying categorical multivariate data," Psychometrika, Springer, vol. 50(1), pages 91-119, March. [Downloadable!] (restricted)
  2. Raquel Arévalo & Javier Ruiz-Castillo, 2004. "The Rental Equivalence Approach To Nonrental Housing In The Consumer Price Index. Evidence From Spain," Economics Working Papers we041704, Universidad Carlos III, Departamento de Economía. [Downloadable!]
  3. Marvin L. Wolverton & Jimmy Senteza, 2000. "Hedonic Estimates of Regional Constant Quality House Prices," Journal of Real Estate Research, American Real Estate Society, vol. 19(3), pages 235-253. [Downloadable!]
  4. Raquel Arévalo-Tomé, 1999. "Construcción de un índice de calidad de la vivienda," Investigaciones Economicas, Fundación SEPI, vol. 23(2), pages 267-280, May. [Downloadable!]
  5. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb.. [Downloadable!] (restricted)
  6. Hubert, Franz, 1995. "Contracting with costly tenants," Regional Science and Urban Economics, Elsevier, vol. 25(5), pages 631-654, October. [Downloadable!] (restricted)
  7. Mick Silver & Saeed Heravi, 2006. "The Difference Between Hedonic Imputation Indexes and Time Dummy Hedonic Indexes," IMF Working Papers 06/181, International Monetary Fund. [Downloadable!]
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  8. W. Erwin Diewert, 2003. "Hedonic Regressions. A Consumer Theory Approach," NBER Chapters, in: Scanner Data and Price Indexes, pages 317-348 National Bureau of Economic Research, Inc. [Downloadable!]
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