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Housing Tenure Choice Implications of Social Networks


  • Jeffry Jacob

    () (Bethel University)

  • Abdul Munasib

    () (Oklahoma State University)


The recent literature on tenure choice has been focusing increasingly on the information aspects of the tenure choice dec ision. However, despite the obvious information channel between social networks and tenure choice, the relationship has drawn little attention in academic research. Since the homeownership decision is almost always associated with a change of location, researchers have often emphasized the importance of modeling tenure choice and mobility decisions jointly. In that joint decision process, the impact of social networks may be multidimensional. Social networks, which in large part are tied to the physical location, are likely to increase the transaction costs of relocation. On the other hand, social networks may ease encourage homeowning through the information channel (e.g., by providing information about mortgage loans and related credit issues, etc.). We estimate the effect of social networks on the joint tenure-mobility decision mechanism. We also address the issue of potential endogeneity of social networks in this joint mobility-tenure choice decision process.

Suggested Citation

  • Jeffry Jacob & Abdul Munasib, 2009. "Housing Tenure Choice Implications of Social Networks," Economics Working Paper Series 0901, Oklahoma State University, Department of Economics and Legal Studies in Business, revised 2009.
  • Handle: RePEc:okl:wpaper:0901

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    References listed on IDEAS

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    More about this item


    Social network; housing tenure choice; mobility; multinomial logit; endogeneity.;

    JEL classification:

    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • R - Urban, Rural, Regional, Real Estate, and Transportation Economics
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification


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