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The Demand for Housing Characteristics in Developing Countries

Author

Listed:
  • James R. Follain

    (University of Illinois, Urbana-Champaign)

  • Emmanuel Jimenez

    (University of Western Ontario on leave to the World Bank)

Abstract

This paper develops and estimates an econometric model of the household demand for housing characteristics. The model is estimated using data from five cities and three developing countries. Overall, the procedures employed work well in a wide variety of circumstances. More specifically, it is found that: (1) Household willingness to pay for living space increases with income but at a less than proportionate rate; (2) Willlingness to pay for living space declines as household size increases; (3) Willingness to pay for several quality measures - structural quality; wall, roof and floor quality - is quite responsive to income.

Suggested Citation

  • James R. Follain & Emmanuel Jimenez, 1985. "The Demand for Housing Characteristics in Developing Countries," Urban Studies, Urban Studies Journal Limited, vol. 22(5), pages 421-432, October.
    • Handle: RePEc:sae:urbstu:v:22:y:1985:i:5:p:421-432
    DOI: 10.1080/00420988520080731
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    References listed on IDEAS

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    1. Follain, James R. & Jimenez, Emmanuel, 1985. "Estimating the demand for housing characteristics: A survey and critique," Regional Science and Urban Economics, Elsevier, vol. 15(1), pages 77-107, February.
    2. Linneman, Peter, 1980. "Some empirical results on the nature of the hedonic price function for the urban housing market," Journal of Urban Economics, Elsevier, vol. 8(1), pages 47-68, July.
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    5. Witte, Ann D & Sumka, Howard J & Erekson, Homer, 1979. "An Estimate of a Structural Hedonic Price Model of the Housing Market: An Application of Rosen's Theory of Implicit Markets," Econometrica, Econometric Society, vol. 47(5), pages 1151-1173, September.
    6. Brown, James N & Rosen, Harvey S, 1982. "On the Estimation of Structural Hedonic Price Models," Econometrica, Econometric Society, vol. 50(3), pages 765-768, May.
    7. Quigley, John M., 1982. "Nonlinear budget constraints and consumer demand: An application to public programs for residential housing," Journal of Urban Economics, Elsevier, vol. 12(2), pages 177-201, September.
    8. Blomquist, Glenn & Worley, Lawrence, 1981. "Hedonic prices, demands for urban housing amenities, and benefit estimates," Journal of Urban Economics, Elsevier, vol. 9(2), pages 212-221, March.
    9. Nelson, Jon P., 1978. "Residential choice, hedonic prices, and the demand for urban air quality," Journal of Urban Economics, Elsevier, vol. 5(3), pages 357-369, July.
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    Citations

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    Cited by:

    1. Brueckner, Jan K. & Lall, Somik V., 2015. "Cities in Developing Countries," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 1399-1455, Elsevier.
    2. Talukdar, Debabrata, 2018. "Cost of being a slum dweller in Nairobi: Living under dismal conditions but still paying a housing rent premium," World Development, Elsevier, vol. 109(C), pages 42-56.
    3. Stephen Malpezzi, "undated". "Hedonic Pricing Models: A Selective and Applied Review," Wisconsin-Madison CULER working papers 02-05, University of Wisconsin Center for Urban Land Economic Research.
    4. Lozano-Gracia, Nancy & Young, Cheryl, 2014. "Housing consumption and urbanization," Policy Research Working Paper Series 7112, The World Bank.
    5. Gulyani, Sumila & Talukdar, Debabrata & Bassett, Ellen M., 2018. "A sharing economy? Unpacking demand and living conditions in the urban housing market in Kenya," World Development, Elsevier, vol. 109(C), pages 57-72.
    6. Brueckner, Jan K. & Rabe, Claus & Selod, Harris, 2019. "Backyarding: Theory and evidence for South Africa," Regional Science and Urban Economics, Elsevier, vol. 79(C).
    7. Brueckner, Jan K. & Mation, Lucas & Nadalin, Vanessa G., 2019. "Slums in Brazil: Where are they located, who lives in them, and do they ‘squeeze’ the formal housing market?," Journal of Housing Economics, Elsevier, vol. 44(C), pages 48-60.
    8. Michael Jacobs & William D. Savedoff, 1999. "There's More Than One Way to Get a House: Housing Strategies in Panama," Research Department Publications 4156, Inter-American Development Bank, Research Department.
    9. Michael Jacobs & William D. Savedoff, 1999. "Hay más de una manera de obtener vivienda: estrategias de vivienda en Panamá," Research Department Publications 4157, Inter-American Development Bank, Research Department.
    10. Malpezzi, Stephen, 2001. "The Contributions of Stephen K. Mayo to Housing and Urban Economics," Journal of Housing Economics, Elsevier, vol. 10(2), pages 72-108, June.
    11. Zax, Jeffrey S., 1997. "Latent Demand for Urban Housing in the People's Republic of China," Journal of Urban Economics, Elsevier, vol. 42(3), pages 377-401, November.
    12. Sumila Gulyani & Ellen M. Bassett & Debabrata Talukdar, 2012. "Living Conditions, Rents, and Their Determinants in the Slums of Nairobi and Dakar," Land Economics, University of Wisconsin Press, vol. 88(2), pages 251-274.
    13. Jacobs, Michael & Savedoff, William D., 1999. "There's More Than One Way to Get a House: Housing Strategies in Panama," IDB Publications (Working Papers) 1890, Inter-American Development Bank.

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