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Housing Tenure Choice and Housing Expenditures in the Czech Republic

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  • Dagmar Špalková

    ()

  • Jiøí Špalek

    ()
    (Department of Public Economics, Masaryk University)

Abstract

Choosing between rented housing and homeownership, the so called housing tenure choice, is a key decision made by each household. Therefore housing economists often seek an answer to the question which factors have an impact on this decision. The paper investigates potential tenure choice determinants using an econometric model based on the sample data. Results of the analysis, making use of the investigation of EU-SILC in the CR, have testified to the fact that tenure choice is affected by the factors similar to those in other countries – household income, marital status of the household head and household size (persons per household). By contrast, the influence of other demographic characteristics of the household head (gender or age) has not been confirmed. The econometric model has also made it possible to evaluate potential impact of these factors on housing related expenses of households. In addition to the logical influence of household income, tenure choice decisions are significantly influenced by household size and residence in Prague, particularly in the rented housing sector.

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Bibliographic Info

Paper provided by Masaryk University, Faculty of Economics and Administration, Department of Public Economics in its series Working Papers with number 11.

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Length: 25 pages
Date of creation: Aug 2013
Date of revision: Aug 2013
Handle: RePEc:mub:wpaper:11

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Keywords: Housing; tenure; choice; expenditures; determinants;

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  1. Bazyl, Monika, 2009. "Factors influencing tenure choice in European countries," IRISS Working Paper Series 2009-04, IRISS at CEPS/INSTEAD.
  2. Krumm, Ronald J., 1984. "Household tenure choice and migration," Journal of Urban Economics, Elsevier, vol. 16(3), pages 259-271, November.
  3. Boehm, Thomas P., 1981. "Tenure choice and expected mobility: A synthesis," Journal of Urban Economics, Elsevier, vol. 10(3), pages 375-389, November.
  4. Kan, Kamhon, 2000. "Dynamic Modeling of Housing Tenure Choice," Journal of Urban Economics, Elsevier, vol. 48(1), pages 46-69, July.
  5. Henderson, J Vernon & Ioannides, Yannis M, 1983. "A Model of Housing Tenure Choice," American Economic Review, American Economic Association, vol. 73(1), pages 98-113, March.
  6. Artle, Roland & Varaiya, Pravin, 1978. "Life cycle consumption and homeownership," Journal of Economic Theory, Elsevier, vol. 18(1), pages 38-58, June.
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