IDEAS home Printed from https://ideas.repec.org/a/sae/urbstu/v25y1988i1p21-33.html
   My bibliography  Save this article

Graphical Assessment of Housing Market Models

Author

Listed:
  • Paul A. Longley

    (Department of Town Planning, UWIST, Colum Drive, Cardiff, CF1 3EU, UK)

  • Richard Dunn

    (Department of Geography, University of Bristol. University Road, Bristol, BS8 ISS, UK)

Abstract

This paper considers the selection of appropriate functional forms for discrete choice models of housing market behaviour. It is argued that uncritical adoption of linear or log-linear forms may be inappropriate, and that Box-Tukey transformations are unnecessarily cumbersome and mechanistic devices in the search for more general functional forms. An alternative graphical assessment procedure based on partial residuals is first presented and is then applied to an empirical case study of tenure choice in London, England. Results are compared with a Box-Tukey analysis, and suggest that the graphical procedure constitutes an important exploratory modelling tool. Graphical functional form evaluation is thus seen to add important insights to analysis of the policy-dominated United Kingdom housing market.

Suggested Citation

  • Paul A. Longley & Richard Dunn, 1988. "Graphical Assessment of Housing Market Models," Urban Studies, Urban Studies Journal Limited, vol. 25(1), pages 21-33, February.
    • Handle: RePEc:sae:urbstu:v:25:y:1988:i:1:p:21-33
    DOI: 10.1080/00420988820080021
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1080/00420988820080021
    Download Restriction: no
    File URL: https://libkey.io/10.1080/00420988820080021?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. Marc J. I. Gaudry, 1980. "Dogit and Logit Models of Travel Mode Choice in Montreal," Canadian Journal of Economics, Canadian Economics Association, vol. 13(2), pages 268-279, May.
    2. McCarthy, Patrick S., 1982. "Further evidence on the temporal stability of disaggregate travel demand models," Transportation Research Part B: Methodological, Elsevier, vol. 16(4), pages 263-278, August.
    3. Allen C. Goodman & Masahiro Kawai, 1984. "Functional Form and Rental Housing Market Analysis," Urban Studies, Urban Studies Journal Limited, vol. 21(4), pages 367-376, November.
    4. John M. Quigley, 1976. "Housing Demand in the Short Run: An Analysis of Polytomous Choice," NBER Chapters, in: Explorations in Economic Research, Volume 3, number 1, pages 76-102, National Bureau of Economic Research, Inc.
    5. Dunn, R. & Longley, P. & Wrigley, N., 1987. "Graphical procedures for identifying functional form in binary discrete choice models : A Case Study of Revealed Tenure Choice," Regional Science and Urban Economics, Elsevier, vol. 17(1), pages 151-167, February.
    6. A Anas, 1979. "The Impact of Transit Investment on Housing Values: A Simulation Experiment," Environment and Planning A, , vol. 11(3), pages 239-255, March.
    7. Li, Mingche M, 1977. "A Logit Model of Homeownership," Econometrica, Econometric Society, vol. 45(5), pages 1081-1097, July.
    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. Thomas P. Boehm, 1982. "A Hierarchical Model of Housing Choice," Urban Studies, Urban Studies Journal Limited, vol. 19(1), pages 17-31, February.
    2. Bhat, Chandra R., 2015. "A comprehensive dwelling unit choice model accommodating psychological constructs within a search strategy for consideration set formation," Transportation Research Part B: Methodological, Elsevier, vol. 79(C), pages 161-188.
    3. Andrejs Skaburskis, 1999. "Modelling the Choice of Tenure and Building Type," Urban Studies, Urban Studies Journal Limited, vol. 36(13), pages 2199-2215, December.
    4. McDonald, John F. & McMillen, Daniel P., 2000. "Employment Subcenters and Subsequent Real Estate Development in Suburban Chicago," Journal of Urban Economics, Elsevier, vol. 48(1), pages 135-157, July.
    5. Deng, Yongheng & Ross, Stephen L. & Wachter, Susan M., 2003. "Racial differences in homeownership: the effect of residential location," Regional Science and Urban Economics, Elsevier, vol. 33(5), pages 517-556, September.
    6. F.M. Dieleman & W.A.V. Clark & M.C. Deurloo, 1989. "A Comparative View of Housing Choices in Controlled and Uncontrolled Housing Markets," Urban Studies, Urban Studies Journal Limited, vol. 26(5), pages 457-468, October.
    7. Mario du Preez & Michael C. Sale, 2012. "Determining the impact of low-cost housing development on nearby property prices using discrete choice analysis," Working Papers 265, Economic Research Southern Africa.
    8. Thomas J. Miceli, 1989. "Housing Rental Contracts and Adverse Selection with an Application to the Rent‐Own Decision," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 17(4), pages 403-421, December.
    9. ÇAGLAYAN, Ebru & UN, Turgut, 2012. "Heteroscedastic Probit Model: An Application Of Home Ownership In Turkey," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 12(2).
    10. Brueckner, Jan K., 2013. "Slums in developing countries: New evidence for Indonesia," Journal of Housing Economics, Elsevier, vol. 22(4), pages 278-290.
    11. Jaibi, M. Raouf & ten Raa, Thijs, 1998. "The additive structure of utility in discrete choice models," Regional Science and Urban Economics, Elsevier, vol. 28(1), pages 91-101, January.
    12. Koşar, Gizem & Ransom, Tyler & van der Klaauw, Wilbert, 2022. "Understanding migration aversion using elicited counterfactual choice probabilities," Journal of Econometrics, Elsevier, vol. 231(1), pages 123-147.
    13. Olivier Guillot, 1990. "L'âge au moment de l'accession à la propriété : une application des méthodes statistiques de l'analyse des durées," Économie et Prévision, Programme National Persée, vol. 96(5), pages 83-91.
    14. Neil Wrigley & Daniel Warm & Barrie Margetts & Amanda Whelan, 2002. "Assessing the Impact of Improved Retail Access on Diet in a 'Food Desert': A Preliminary Report," Urban Studies, Urban Studies Journal Limited, vol. 39(11), pages 2061-2082, October.
    15. Waddell, Paul & Boeing, Geoff & Gardner, Max & Porter, Emily, 2018. "An Integrated Pipeline Architecture for Modeling Urban Land Use, Travel Demand, and Traffic Assignment," SocArXiv 74zaw, Center for Open Science.
    16. Allen, W. Bruce, 1987. "Value Capture in Transit," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 28(1).
    17. Yuri S. Mansury & Nij Tontisirin & Sutee Anantsuksomsri, 2012. "The impact of the built environment on the location choices of the creative class: Evidence from Thailand," Regional Science Policy & Practice, Wiley Blackwell, vol. 4(3), pages 183-205, August.
    18. Earnhart, Dietrich, 2002. "Combining Revealed and Stated Data to Examine Housing Decisions Using Discrete Choice Analysis," Journal of Urban Economics, Elsevier, vol. 51(1), pages 143-169, January.
    19. Paul R. Blackley & David Greytak, 1986. "Comparative Advantage and Industrial Location: An Intrametropolitan Evaluation," Urban Studies, Urban Studies Journal Limited, vol. 23(3), pages 221-230, June.
    20. Hai Jiang & Shuiping Chen, 2016. "Dwelling unit choice in a condominium complex: Analysis of willingness to pay and preference heterogeneity," Urban Studies, Urban Studies Journal Limited, vol. 53(11), pages 2273-2292, August.

    More about this item

    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:urbstu:v:25:y:1988:i:1:p:21-33. 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.gla.ac.uk/departments/urbanstudiesjournal .

    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.