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Structural Estimation of Residential Mobility and Housing Tenure Choice

Author

Listed:
  • IOANNIDES, Yannis

    (Department of Economics, VPI&SU, USA)

  • KAN, Kamhon

    (CORE, Universite catholique de Louvain and The Institute of Economics Academia Sinica, Taiwan)

Abstract

This study is devoted to studying households' decisions about moving and about whether to rent or own after moving. It employs dynamic discrete choice models which condition households' decisions on their circumstances at every point in time during the length of the observation while accounting for individual heterogeneity. The results show that key dynamic elements, captured by means of lagged dependent variables, as well as household heterogeneity, are very significant determinants of the tenure choice and mobility decisions. Moreover, homeowners are found to be responsive to housing market conditions in adjusting their housing stock. Housing price appreciation is found to be discouraging renters from moving and owning. Finally, our results reject the proportional monetary transaction costs specification suggesting that monetary transaction cost might be fixed

Suggested Citation

  • IOANNIDES, Yannis & KAN, Kamhon, 1994. "Structural Estimation of Residential Mobility and Housing Tenure Choice," CORE Discussion Papers 1994032, Universit√© catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  • Handle: RePEc:cor:louvco:1994032
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    File URL: https://uclouvain.be/en/research-institutes/immaq/core/dp-1994.html
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    More about this item

    Keywords

    Residential Mobility; Housing Tenure Choice; Dynamic Discrete Choice;

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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