The Benefits of Owner-Occupation in Neighborhoods

N. Edward Coulson, Seok-Joon Hwang and Susumu Imai

Journal of Housing Research, 2003, vol. 14, issue 1, 21-48

Abstract: This article estimates the surplus that accrues to landowners and residents from being in neighborhoods with a higher preponderance of homeowners. Joint models of housing tenure choice and hedonic price determination are estimated for three regions of the United States. Following our previous work, this allows consistent estimation of the hedonic price of the endogenous characteristic of neighborhood homeownership.Allowing the hedonic parameters to vary by region creates sufficient parameter variation to estimate bid (i.e., compensated demand) functions for neighborhood homeownership using the instrumental variables estimator of Epple (1987) and Bartik (1987). We find that the willingness to pay for neighborhood homeownership is large, amounting to about $5,000 per year, and very little of this goes to landlords in the form of higher prices.

Date: 2003
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/2167034X.2003.12461359 (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:rjrhxx:v:14:y:2003:i:1:p:21-48

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rjrh20

DOI: 10.1080/2167034X.2003.12461359

Access Statistics for this article

Journal of Housing Research is currently edited by Kimberly Goodwin

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