Abstract

In this study a dynamic random effects simultaneous equation model is developed to model household tenure choice decision. The novelty of the study lies in accounting for the dynamic aspects of housing tenure mode, namely, a move is prerequisite to a change in tenure mode and they are determined jointly, expected mobility and tenure choice are interdependent decisions, and tenure choice may be state dependent (i.e., taste for ownership acquired or reinforced through the experience of being an owner). In addition, unobservable household heterogeneity is controlled by imposing a random effects specification. The estimation is based on panel data from the PSID using the method of maximum simulated likelihood.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.