CITC03H3 Lecture Notes - Lecture 3: Negative Equity, Saving, Census Tract
Document Summary
#3a: miron: housing demand, coping strategy and selection bias. Consumers select living arrangement, tenure and housing based on price, income, wealth and taste. Consumers select housing careers (lifetime home consumption) to cope with labour market risks. Paper estimates model of housing choice using canada-wide samples from. 1980-1990"s wherein asset price, accommodation rents and income prospects vary region by region over time. Demonstrate how housing careers of individuals/families reflect their strategies for coping with labour market uncertainty. ***transition to home ownership via living in rental accommodation. Links to saving behaviour (people stop saving during recessions) Model 5 predicts the probability that consumer (individual or nuclear family) lives alone. Model 6 predicts the probability that household is a renter. Model 7 predicts quantity of housing service (gr) consumed by renter household. Model 8 predicts probability regular renter household spends +30% income or more on rent. Model 9 predicts probability regular renter household is inadequate housing.
