Income elasticity of housing consumption in Hong Kong: a cointegration approach

Raymond Y. C. Tse and John Raftery

Journal of Property Research, 1999, vol. 16, issue 2, 123-138

Abstract: Income elasticity of housing expenditure is of considerable interest particularly to applied researchers in housing economics. However, there is a wide variation in the estimation of income elasticity. Such a variation is attributed to different specifications of estimation. This paper applies techniques developed in the literature of cointegration analysis to re-examine the income elasticity of housing consumption based on a long-run equilibrium model fitted with time-series data. Tests for unit roots are conducted to avoid spurious results in the estimation of the model. The use of the timeseries data generates some attractive properties. The results show that the short-run income elasticity is generally less than unity and the adjustment parameter is about 0.8. These results can be used to estimate the value of income elasticity of public and private housing residents, and of owners and renters separately.

Date: 1999
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://hdl.handle.net/10.1080/095999199368184 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:jpropr:v:16:y:1999:i:2:p:123-138

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RJPR20

DOI: 10.1080/095999199368184

Access Statistics for this article

Journal of Property Research is currently edited by Bryan MacGregor

More articles in Journal of Property Research from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().