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An analysis of housing expenditure using semiparametric cross-section models

Author

Listed:
  • Bertrand Melenberg

    (Tilburg University, Dept. of Econometrics, P.O.Box 90153, 5000 LE, Tilburg, The Netherlands)

  • Arthur van Soest

    (Tilburg University, Dept. of Econometrics, P.O.Box 90153, 5000 LE, Tilburg, The Netherlands)

  • Erwin Charlier

    (NIB Capital Asset Management N.V., P.O.Box 8285, 3503 RG, Utrecht, The Netherlands)

Abstract

In this paper we model expenditure on housing for owners and renters by means of endogenous switching regression models using cross-section data. We explain the share of housing in total expenditure from family characteristics and total expenditure, where the latter is allowed to be endogenous. We apply various existing parametric and semiparametric techniques for cross-section data. Exogeneity of total expenditure is rejected for the parametric models but not for most semiparametric models. The results are compared on the basis of budget elasticities and graphs of the estimated relationship between the budget share spent on housing and the logarithm of total expenditure.

Suggested Citation

  • Bertrand Melenberg & Arthur van Soest & Erwin Charlier, 2000. "An analysis of housing expenditure using semiparametric cross-section models," Empirical Economics, Springer, vol. 25(3), pages 437-462.
  • Handle: RePEc:spr:empeco:v:25:y:2000:i:3:p:437-462
    Note: received: November 1997 / Final version received: January 2000
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    Citations

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    Cited by:

    1. Edwin Van Gameren & Michiel Ras & Evelien Eggink & Ingrid Ooms, 2005. "The demand for housing services in the Netherlands," ERSA conference papers ersa05p327, European Regional Science Association.
    2. Charlier, Erwin & Melenberg, Bertrand & van Soest, Arthur, 2001. "An analysis of housing expenditure using semiparametric models and panel data," Journal of Econometrics, Elsevier, vol. 101(1), pages 71-107, March.
    3. Jos Van Ommeren & Michiel Van Leuvensteijn, 2005. "New Evidence of the Effect of Transaction Costs on Residential Mobility," Journal of Regional Science, Wiley Blackwell, vol. 45(4), pages 681-702, November.
    4. Lisa Farrell & Michael A. Shields, 2007. "Children as consumers: investigating child diary expenditure data," Canadian Journal of Economics, Canadian Economics Association, vol. 40(2), pages 445-467, May.
    5. Anil Kumar, 2004. "Taxes, Deadweight Loss and Intertemporal Female Labor Supply: Evidence from Panel Data," Center for Policy Research Working Papers 61, Center for Policy Research, Maxwell School, Syracuse University.
    6. Farrell, Lisa & Shields, Michael A., 2001. "Child Expenditure: The Role of Working Mothers, Lone Parents, Sibling Composition and Household Provision," IZA Discussion Papers 388, Institute of Labor Economics (IZA).
    7. Jos Van Ommeren & Michiel Van Leuvensteijn, 2005. "New Evidence of the Effect of Transaction Costs on Residential Mobility," Journal of Regional Science, Wiley Blackwell, vol. 45(4), pages 681-702, November.

    More about this item

    Keywords

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    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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