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Does The House Slave Effect Depress International Tourism Travelling?

Author

Listed:
  • Zdravko Sergo

    (Institute of Agriculture and Tourism, PoreÄ , Croatia, Department of Tourism)

  • Jasmina Grzinic

    (Juraj Dobrila University of Pula, Faculty of Economics and Tourism Dr. Mijo Mirkovic)

  • Tatiana Zanini Gavranic

    (The Fundation for Partnership and Civil Society Development, Istria, Croatia)

Abstract

This paper examines the relationship between "the house slave effect" and tourist outmigration in most European countries. The outline of this study is set up on the analysis of annual data on homeownership and tenant participants in plan to measure the relationship between housing wealth endowment and outbound traveling, with a panel framework that spans the period from 2007 to 2019. In the present empirical case, this paper examines whether or not there is a significant relationship in the sample of 32 countries by using a panel quantile regression method, a panel SGMM, and a panel OLS regression. Estimation outputs reveal that there is a strong negative trade-off between homeownership and outbound tourism for all quantile levels. This evidence along with the auxiliary SGMM and pooled panel estimation assessment strongly confirm that “the house slave effect†negatively affects outbound tourism. What is more, the results show that tenant rates help to boost the international tourism departures or expenditures per capita. The novelty of this work lies in the fact that it provides the pioneering study of the impact of home ownership on outbound travel in European area. The results suggest that a panel quantile regression method (due to data constraints arising from the skewness of international tourism outbound or per capita expenditure data) should be considered when examining the relationship between "the "house slave effect" and outbound tourism in country panel analyses.

Suggested Citation

  • Zdravko Sergo & Jasmina Grzinic & Tatiana Zanini Gavranic, 2023. "Does The House Slave Effect Depress International Tourism Travelling?," Economic Thought and Practice, Department of Economics and Business, University of Dubrovnik, vol. 32(2), pages 473-494, december.
    • Handle: RePEc:avo:emipdu:v:32:y:2023:i:2:p:473-494
    DOI: 10.17818/EMIP/2023/2.9
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    References listed on IDEAS

    as
    1. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 38(2), pages 112-134.
    2. Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, vol. 49(6), pages 1417-1426, November.
    3. Edward E. Leamer, 2015. "Housing Really Is the Business Cycle: What Survives the Lessons of 2008–09?," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 47(S1), pages 43-50, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Europe; homeownership rate; house slave effect; panel quantile regression; tenant; outbound tourism;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • Z32 - Other Special Topics - - Tourism Economics - - - Tourism and Development

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