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A Model of the Housing Privatization Decision: The Case of Russia

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  • Maria Plotnikova

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    (Department of Economics, University of Reading)

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    Abstract

    This study addresses the issue of housing privatization in Russia in the course of the 1990s. Privatization was started to create a housing market in order to efficiently allocate resources in the use and production of housing, and to phase out the state budget financing of housing. The dwellings were offered to their residents free of payment. The objective of this study is to offer a better understanding of the structural components of privatization by formally modeling housing privatization decision from the household point of view. The model is based on a trade-off between certain value of renting and uncertain value of owning. Using the results of the theoretical model, an empirical model of the privatization decision from the point of view of the household is formulated.

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    File URL: http://www.reading.ac.uk/web/FILES/economics/emdp2010088.pdf
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    Bibliographic Info

    Paper provided by Henley Business School, Reading University in its series Economics & Management Discussion Papers with number em-dp2010-07.

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    Length: 32 pages
    Date of creation: 30 Aug 2010
    Date of revision:
    Handle: RePEc:rdg:emxxdp:em-dp2010-07

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    1. Brueckner, Jan K., 1986. "The downpayment constraint and housing tenure choice : A simplified exposition," Regional Science and Urban Economics, Elsevier, vol. 16(4), pages 519-525, November.
    2. Berger, Mark C. & Blomquist, Glenn C. & Sabirianova Peter, Klara, 2008. "Compensating differentials in emerging labor and housing markets: Estimates of quality of life in Russian cities," Journal of Urban Economics, Elsevier, vol. 63(1), pages 25-55, January.
    3. M. Weeks, 2003. "Discrete choice methods with simulation, Kenneth E. Train, Cambridge University Press, 2003, ISBN: 0-521-81696-3, pp. 334," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 18(3), pages 379-383.
    4. Anders Skrondal & Sophia Rabe-Hesketh, 2003. "Multilevel logistic regression for polytomous data and rankings," Psychometrika, Springer, vol. 68(2), pages 267-287, June.
    5. Harvey S. Rosen & Kenneth T. Rosen & Douglas Holtz-Eakin, 1984. "Housing Tenure, Uncertainty, and Taxation," NBER Working Papers 1168, National Bureau of Economic Research, Inc.
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