Abstract
In this paper a structural model of the demand for owner-occupied housing and a reduced form model of tenure choice are constructed and estimated. The estimation method used is a first attempt at taking the nonlinearity of budget constraints and the sample selection problem into proper consideration. Conditional demand and tenure choice are jointly estimated for Swedish data from 1980. The model allows for a correlation between random terms representing unobserved heterogeneity of preferences in the demand function and the tenure choice equation. The estimated model resembles the Tobit model in the sense that these random terms are perfectly correlated.
Sign-in/Register to access full text options 
Free) 
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
