Housing and Urban Location Decisions in Spain: An Econometric Analysis with Unobserved Heterogeneity

This paper examines the simultaneous individual choices in Spain as regards housing (tenure choice and demand) and urban location decisions, taking into account certain unobserved heterogeneity exhibited by individuals. A multinomial mixed logit model is proposed to portray household decisions consi...

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Bibliographic Details
Published in:Urban studies (Edinburgh, Scotland) Scotland), 2007-08, Vol.44 (9), p.1657-1676
Main Authors: Barrios Garcia, Javier A., Rodriguez Hernandez, Jose Enrique
Format: Article
Language:English
Subjects:
Barrios
Decision analysis
Decision making
Decisions
Demand
Econometric Analysis
Econometrics
Economic models
Estimation methods
Heterogeneity
Home ownership
Housing
Housing demand
Housing tenure
Income elasticity of demand
Income estimates
Leases
Neighborhoods
Owners
Place
Price elasticity
Property
Rational choice
Real estate
Renting
Residence
Residential Preferences
Rural areas
Rural communities
Rural housing
Sampling methods
Spain
Tenants
Tenure
Transitory income
Urban areas
Urban sociology
Urban studies
Urbanization
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Summary:This paper examines the simultaneous individual choices in Spain as regards housing (tenure choice and demand) and urban location decisions, taking into account certain unobserved heterogeneity exhibited by individuals. A multinomial mixed logit model is proposed to portray household decisions considering four different options: horneownership according to the type of urbanisation of the neighbourhood (high-level urban property, medium/inferior-level urban property and rural property) and renting. Finally, housing demand is estimated, controlling for sample selection. The results confirm that both housing tenure and urban location, in addition to the unobserved heterogeneity of individuals in this context, could modify appreciably housing demand estimates for both owners and renters.
ISSN:0042-0980
1360-063X
DOI:10.1080/00420980701426624