IDEAS home Printed from https://ideas.repec.org/a/sae/emffin/v19y2020i1p100-118.html
   My bibliography  Save this article

Housing Choice as a Function of Risks Confronting Low-income Households

Author

Listed:
  • Anand Sahasranaman
  • Vishnu Prasad
  • Aditi Balachander

Abstract

The design of housing solutions for low-income populations has been one of the most pressing policy concerns in developing countries like India. In this work, we explore the effect of risks confronting low-income households—unemployment, health and mortality—on their choice of housing arrangements. We use simulations to study the evolution of long-term wealth of a stylised low-income household faced with these risks and find that, on average, rental housing significantly reduces the risk of undesirable wealth fluctuations over time. From a policy perspective, this means greater focus and incentives for the development of low-income rental markets using strategies such as provision of rental vouchers, rent-to-own models or long-term leases, in addition to the traditional ownership-based housing strategies. The development of housing solutions encompassing a range of rental and ownership models will be critical to ensuring the availability of safe and affordable housing for all urban residents. JEL Codes: C63, O18

Suggested Citation

  • Anand Sahasranaman & Vishnu Prasad & Aditi Balachander, 2020. "Housing Choice as a Function of Risks Confronting Low-income Households," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 19(1), pages 100-118, April.
    • Handle: RePEc:sae:emffin:v:19:y:2020:i:1:p:100-118
    DOI: 10.1177/0972652719877475
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0972652719877475
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0972652719877475?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Suyash Rai & Bindu Ananth & Nachiket Mor, 2010. "Universalizing Complete Access to Finance : Key Conceptual Issues," Finance Working Papers 23126, East Asian Bureau of Economic Research.
    2. Anand Sahasranaman & Henrik Jeldtoft Jensen, 2017. "Cooperative dynamics of neighborhood economic status in cities," PLOS ONE, Public Library of Science, vol. 12(8), pages 1-15, August.
    3. Francis Bloch & Vijayendra Rao & Sonalde Desai, 2004. "Wedding Celebrations as Conspicuous Consumption: Signaling Social Status in Rural India," Journal of Human Resources, University of Wisconsin Press, vol. 39(3).
    4. Mitra, Arup & Murayama, Mayumi, 2008. "Rural to Urban Migration: A District Level Analysis for India," IDE Discussion Papers 137, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    5. Anirudh Krishna, 2010. "Who became poor, who escaped poverty, and why? Developing and using a retrospective methodology in five countries," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 29(2), pages 351-372.
    6. Sonalde Desai & Lester Andrist, 2010. "Gender scripts and age at marriage in India," Demography, Springer;Population Association of America (PAA), vol. 47(3), pages 667-687, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stopnitzky, Yaniv, 2012. "The Bargaining Power of Missing Women: Evidence from a Sanitation Campaign in India," MPRA Paper 37841, University Library of Munich, Germany.
    2. Sheetal Sekhri & Sisir Debnath, 2014. "Intergenerational Consequences of Early Age Marriages of Girls: Effect on Children's Human Capital," Journal of Development Studies, Taylor & Francis Journals, vol. 50(12), pages 1670-1686, December.
    3. Andrew E. Clark, 2018. "Four Decades of the Economics of Happiness: Where Next?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 64(2), pages 245-269, June.
    4. repec:spo:wpmain:info:hdl:2441/vbu6kd1s68o6r34k5bcm3iopv is not listed on IDEAS
    5. Jinkins, David, 2016. "Conspicuous consumption in the United States and China," Journal of Economic Behavior & Organization, Elsevier, vol. 127(C), pages 115-132.
    6. Richard Kwabena Nkrumah & Samuel Kobina Annim & Benedict Afful, 2021. "Household Social Expenditure in Ghana: Examining the Ex-Post Effects and Vulnerability to Poverty," Social Sciences, MDPI, vol. 10(2), pages 1-15, January.
    7. Margaux Suteau, 2020. "Inheritance Rights and Women's Empowerment in the Labor and Marriage Markets," THEMA Working Papers 2020-17, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    8. David P. Ashmore & Roselle Thoreau & Corina Kwami & Nicola Christie & Nicholas A. Tyler, 2020. "Using thematic analysis to explore symbolism in transport choice across national cultures," Transportation, Springer, vol. 47(2), pages 607-640, April.
    9. Khamis, Melanie & Prakash, Nishith & Siddique, Zahra, 2012. "Consumption and social identity: Evidence from India," Journal of Economic Behavior & Organization, Elsevier, vol. 83(3), pages 353-371.
    10. Chiplunkar, Gaurav & Weaver, Jeffrey, 2023. "Marriage markets and the rise of dowry in India," Journal of Development Economics, Elsevier, vol. 164(C).
    11. Basu, Alaka & Desai, Sonalde, 2016. "Hopes, Dreams and Anxieties: India’s One-Child Families," MPRA Paper 117304, University Library of Munich, Germany.
    12. Tomich, Thomas P. & Lidder, Preetmoninder & Coley, Mariah & Gollin, Douglas & Meinzen-Dick, Ruth & Webb, Patrick & Carberry, Peter, 2019. "Food and agricultural innovation pathways for prosperity," Agricultural Systems, Elsevier, vol. 172(C), pages 1-15.
    13. Sengupta, Shruti & Azam, Mehtabul, 2022. "The Effect of Trade Liberalization on Marriage and Fertility: Evidence from Indian Census," IZA Discussion Papers 15841, Institute of Labor Economics (IZA).
    14. Banuri, Sheheryar & Nguyen, Ha, 2023. "Borrowing to keep up (with the Joneses): Inequality, debt, and conspicuous consumption," Journal of Economic Behavior & Organization, Elsevier, vol. 206(C), pages 222-242.
    15. Jaikumar, Saravana & Singh, Ramendra & Sarin, Ankur, 2018. "‘I show off, so I am well off’: Subjective economic well-being and conspicuous consumption in an emerging economy," Journal of Business Research, Elsevier, vol. 86(C), pages 386-393.
    16. Tannistha Samanta, 2020. "Women’s empowerment as self-compassion?: Empirical observations from India," PLOS ONE, Public Library of Science, vol. 15(5), pages 1-18, May.
    17. Augsburg, Britta & Baquero, Juan P. & Gautam, Sanghmitra & Rodriguez-Lesmes, Paul, 2023. "Sanitation and marriage markets in India: Evidence from the Total Sanitation Campaign," Journal of Development Economics, Elsevier, vol. 163(C).
    18. Kanika Mahajan & Bharat Ramaswami, 2017. "Caste, Female Labor Supply, and the Gender Wage Gap in India: Boserup Revisited," Economic Development and Cultural Change, University of Chicago Press, vol. 65(2), pages 339-378.
    19. Clark, Andrew E. & D'Ambrosio, Conchita, 2014. "Attitudes to Income Inequality: Experimental and Survey Evidence," IZA Discussion Papers 8136, Institute of Labor Economics (IZA).
    20. Bhalotra, Sonia & Chakravarty, Abhishek & Gulesci, Selim, 2020. "The price of gold: Dowry and death in India," Journal of Development Economics, Elsevier, vol. 143(C).
    21. Anand Sahasranaman & Henrik Jeldtoft Jensen, 2018. "Ethnicity and wealth: The dynamics of dual segregation," PLOS ONE, Public Library of Science, vol. 13(10), pages 1-22, October.

    More about this item

    Keywords

    Emerging markets; financial inclusion; government policy and regulation; housing; simulation;
    All these keywords.

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:emffin:v:19:y:2020:i:1:p:100-118. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.ifmr.ac.in .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.