TY - JOUR
T1 - On discrete choice models of housing demand
AU - Börsch-supan, Axel
AU - Pitkin, John
N1 - Funding Information:
Two competing principles have to be considered for choosing a specific estimation procedure for these shares: (1) it should be as close as possible to the true decision process with which a household chooses its housing unit; and (2) it should be as simple as possible to allow widespread ‘The paper benefitted greatly from comments by Dan McFadden, Ray Struyk, and an anonymous referee. The research was partially funded by the U.S. Department of Housing and Urban Development, Office of Policy Development and Research, Grant No. HG-5423, and by the Housing Futures Program of the Joint Center of Housing Studies of MIT and Harvard University. *A number of housing demand models using this method have been developed for several countries. See pitkin and Masnick [12] for the United States who introduce a persistence or cohort effect into a linear extrapolation of the shares, Behring et 01. [l] who estimate a large nonlinear housing demand model for West Germany, and Biirsch-Supan [3] for an intema-tional comparison of housing demand and tenure choice. 153
PY - 1988/9
Y1 - 1988/9
N2 - This paper explores several specifications of discrete choice models in estimating housing consumption for purposes of projection and policy simulation. We view housing consumption comprehensively as it includes the choice between three types of homeownership, five types of rented housing, and, as a ninth alternative, not heading a household. The familiar multinomial logit specification is rejected by several specification tests. The paper therefore studies a variety of nested multinomial logit models of hierarchical choice that allow a richer substitution pattern among the very disparate housing choices enumerated above. Estimations of different nesting structures reveal strong and plausible differences among nesting structures.
AB - This paper explores several specifications of discrete choice models in estimating housing consumption for purposes of projection and policy simulation. We view housing consumption comprehensively as it includes the choice between three types of homeownership, five types of rented housing, and, as a ninth alternative, not heading a household. The familiar multinomial logit specification is rejected by several specification tests. The paper therefore studies a variety of nested multinomial logit models of hierarchical choice that allow a richer substitution pattern among the very disparate housing choices enumerated above. Estimations of different nesting structures reveal strong and plausible differences among nesting structures.
UR - http://www.scopus.com/inward/record.url?scp=38249028555&partnerID=8YFLogxK
U2 - 10.1016/0094-1190(88)90036-8
DO - 10.1016/0094-1190(88)90036-8
M3 - Article
AN - SCOPUS:38249028555
SN - 0094-1190
VL - 24
SP - 153
EP - 172
JO - Journal of Urban Economics
JF - Journal of Urban Economics
IS - 2
ER -