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Housing demand in Russia: Rationing and reform1

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  • Robert M. Buckley
  • Eugene N. Gurenko

Abstract

In a number of articles Alexeev (1988a) and (1988b) shows that in the former Soviet Union the administrative rationing of housing was partially replaced by market forces acting through the second economy. This paper uses a much richer dataset to update his analysis for Russia to consider housing demand in 1992, the last year of the administrative allocation system. Almost immediately after the survey used for this analysis Russia began to privatize the housing stock as part of its movement towards a market economy. The questions we ask are: Were households really able to beat the system, as argued by Alexeev and, if so, were they still able to do so in 1992? Our answer to the second question is that in 1992 households were not able to beat the system. Income had no observable effect on housing demand. Furthermore, we do not think that the difference in our empirical results and Alexeev's is due only to the broader economic changes that occurred since his estimation or the richer dataset available to us. Indeed, our answer to the first question is that there are good reasons for arguing that Alexeev's estimates of the income elasticity of housing demand are biased upwards.

Suggested Citation

  • Robert M. Buckley & Eugene N. Gurenko, 1998. "Housing demand in Russia: Rationing and reform1," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 6(1), pages 197-209, May.
    • Handle: RePEc:bla:etrans:v:6:y:1998:i:1:p:197-209
    DOI: 10.1111/j.1468-0351.1998.tb00045.x
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    References listed on IDEAS

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    1. Robert M. Buckley, 1996. "Housing Finance in Developing Countries," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-37660-1, March.
    2. Atkinson,Anthony Barnes & Micklewright,John, 1992. "Economic Transformation in Eastern Europe and the Distribution of Income," Cambridge Books, Cambridge University Press, number 9780521438827.
    3. Osama J. A. R. Abu Shair, 1997. "Privatization and Development," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-25374-6, March.
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    Citations

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    Cited by:

    1. Berger, Mark C. & Blomquist, Glenn C. & Sabirianova Peter, Klara, 2008. "Compensating differentials in emerging labor and housing markets: Estimates of quality of life in Russian cities," Journal of Urban Economics, Elsevier, vol. 63(1), pages 25-55, January.
    2. Murray, Michael P. & Sun, Guoqing, 2017. "The demand for space in China," Journal of Urban Economics, Elsevier, vol. 98(C), pages 214-222.
    3. Anderson, John E., 2001. "Emerging Housing Markets in Moldova," Journal of Housing Economics, Elsevier, vol. 10(3), pages 419-428, September.
    4. Flemming, J.S. & Micklewright, John, 2000. "Income distribution, economic systems and transition," Handbook of Income Distribution, in: A.B. Atkinson & F. Bourguignon (ed.), Handbook of Income Distribution, edition 1, volume 1, chapter 14, pages 843-918, Elsevier.
    5. Evgeniya Kolomak, 2012. "Urbanization and Economic Development in Russia," ERSA conference papers ersa12p82, European Regional Science Association.
    6. Robert M. Buckleyand & Sasha Tsenkova, 2001. "Housing Market Systems In Reforming Socialist Economies: Comparative Indicators Of Performance And Policy," European Journal of Housing Policy, Taylor and Francis Journals, vol. 1(2), pages 257-289.
    7. Zsuzsa Dániel, 1997. "The paradox in the privatization of Hungary's public housinhg: a national gift or a bad bargain?1," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 5(1), pages 147-170, May.
    8. Stephen Malpezzi, 2000. "Tales from the Real Side: The Implications of Urban Research for Real Estate Finance in Developing and Transition Economies," Wisconsin-Madison CULER working papers 01-02, University of Wisconsin Center for Urban Land Economic Research.
    9. Robert Buckley & Ashna Mathema, 2018. "Housing privatization in Romania : An Anti†commons tragedy?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 26(1), pages 127-145, January.
    10. Buckley, Robert & Cartwright, Kim & Struyk, Raymond & Szymanoski, Edward, 2003. "Integrating housing wealth into the social safety net : the elderly in Moscow," Policy Research Working Paper Series 3115, The World Bank.
    11. Buckley, Robert & Cartwright, Kim & Struyk, Raymond & Szymanoski, Edward, 2003. "Integrating housing wealth into the social safety net for the Moscow elderly: an empirical essay," Journal of Housing Economics, Elsevier, vol. 12(3), pages 202-223, September.
    12. Oleksandr Shepotylo, 2012. "Cities in Transition," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 54(3), pages 661-688, September.

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