IDEAS home Printed from https://ideas.repec.org/a/sae/urbstu/v41y2004i8p1521-1536.html
   My bibliography  Save this article

Estimation of the Tenants' Benefits Residing in Public Rental Housing with Unit Size Constraint in Korea

Author

Listed:
  • In Joon Kim

    (Korea Advanced Institute of Science and Technology (KAIST), 207-43 Cheongyangri-Dong, Dongdaemun-Gu, Seoul, Korea 130-012, ijkim@kgsm.kaist.ac.kr)

  • Geun Yong Kim

    (PhD Programme of KAIST and in the Korea Research Institute for Human Settlements (KRIHS), KRIHS, 1591-6, Gwanyang-Dong, Anyang-City, Kyunggi-Do, Korea 431-712, gykim@krihs.re.kr)

  • Juhyun Yoon

    (Korea Research Institute for Human Settlements (KRIHS), jhyoon@krihs.re.kr)

Abstract

Hicksian income equivalent variation (EV) has often been used to measure tenants' benefits in evaluating public housing programmes. A number of papers have so far attempted to apply Hicksian EV under the implicit assumption of no constraint on unit size of public housing. As a result, overestimation of tenants' benefits probably occurs where unit size constraints exist, as in Korea's public housing programme. Thus, the purpose of the paper is to measure Hicksian EV with the constraint in unit size of public housing by formulating a revised Hicksian EV equation and comparing the result with constraint-free cases. It is found that Hicksian EV with constraint in unit size decreases relative to that of the constraint-free cases. The extent of EV decrease depends on the income elasticity of demand for housing and the difference between the optimum consumption of public housing under rent support (demand wanted) and the actual constraint of unit size (demand fulfilled).

Suggested Citation

  • In Joon Kim & Geun Yong Kim & Juhyun Yoon, 2004. "Estimation of the Tenants' Benefits Residing in Public Rental Housing with Unit Size Constraint in Korea," Urban Studies, Urban Studies Journal Limited, vol. 41(8), pages 1521-1536, July.
  • Handle: RePEc:sae:urbstu:v:41:y:2004:i:8:p:1521-1536
    DOI: 10.1080/0042098042000226984
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1080/0042098042000226984
    Download Restriction: no

    File URL: https://libkey.io/10.1080/0042098042000226984?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. Olsen, Edgar O. & Barton, David M., 1983. "The benefits and costs of public housing in New York City," Journal of Public Economics, Elsevier, vol. 20(3), pages 299-332, April.
    2. Murray, Michael P, 1983. "Subsidized and Unsubsidized Housing Starts: 1961-1977," The Review of Economics and Statistics, MIT Press, vol. 65(4), pages 590-597, November.
    3. Stephen Malpezzi, "undated". "Hedonic Pricing Models: A Selective and Applied Review," Wisconsin-Madison CULER working papers 02-05, University of Wisconsin Center for Urban Land Economic Research.
    4. Edgar O. Olsen, 2000. "The Cost-Effectiveness of Alternative Methods of Delivering Housing Subsidies," Virginia Economics Online Papers 351, University of Virginia, Department of Economics.
    5. Malpezzi, Stephen, 1998. "Welfare analysis of rent control with side payments: a natural experiment in Cairo, Egypt1," Regional Science and Urban Economics, Elsevier, vol. 28(6), pages 773-795, November.
    6. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    7. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    8. Quigley, John M., 1982. "Nonlinear budget constraints and consumer demand: An application to public programs for residential housing," Journal of Urban Economics, Elsevier, vol. 12(2), pages 177-201, September.
    9. Charles R. Hulten, 2003. "Price hedonics: a critical review," Economic Policy Review, Federal Reserve Bank of New York, issue Sep, pages 5-15.
    10. Goodman, Allen C., 1978. "Hedonic prices, price indices and housing markets," Journal of Urban Economics, Elsevier, vol. 5(4), pages 471-484, October.
    11. Parsons, George R., 1990. "Hedonic prices and public goods: An argument for weighting locational attributes in hedonic regressions by lot size," Journal of Urban Economics, Elsevier, vol. 27(3), pages 308-321, May.
    12. Schwab, Robert M., 1985. "The benefits of in-kind government programs," Journal of Public Economics, Elsevier, vol. 27(2), pages 195-210, July.
    13. De Borger, Bruno, 1987. "Alternative housing concepts and the benefits of public housing programs," Journal of Urban Economics, Elsevier, vol. 22(1), pages 73-89, July.
    14. Murray, Michael P, 1975. "The Distribution of Tenant Benefits in Public Housing," Econometrica, Econometric Society, vol. 43(4), pages 771-788, 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. Celia Bilbao-Terol, 2009. "Impacts of an Iron and Steel Plant on Residential Property Values," European Planning Studies, Taylor & Francis Journals, vol. 17(9), pages 1421-1436, September.
    2. Wieser, Robert, 2009. "Parameterstabilität in hedonischen Bodenpreismodellen [Stability of Parameters in Hedonic Urban Land Price Models]," MPRA Paper 65859, University Library of Munich, Germany.
    3. Edgar O. Olsen, 2003. "Housing Programs for Low-Income Households," NBER Chapters, in: Means-Tested Transfer Programs in the United States, pages 365-442, National Bureau of Economic Research, Inc.
    4. Kevin Hoefman & Aaron Bramson & Koen Schoors & Jan Ryckebusch, 2018. "The impact of functional and social value on the price of goods," PLOS ONE, Public Library of Science, vol. 13(11), pages 1-12, November.
    5. Çağlayan Ebru & Arikan Eban, 2011. "Determinants of house prices in Istanbul: a quantile regression approach," Quality & Quantity: International Journal of Methodology, Springer, vol. 45(2), pages 305-317, February.
    6. Xiandeng Jiang & Zheng Pan & Ningru Zhao, 2023. "Relative Value vs Absolute Value: Housing Wealth and Labor Supply," The Journal of Real Estate Finance and Economics, Springer, vol. 66(1), pages 41-76, January.
    7. Isaac F. Megbolugbe, 1991. "Hedonic Indices and Housing Programme Benefits," Urban Studies, Urban Studies Journal Limited, vol. 28(5), pages 773-781, October.
    8. Shimizu, Chihiro, 2014. "How Are Property Investment Returns Determined? : Estimating the Micro-Structure of Asset Prices, Property Income, and Discount Rates," HIT-REFINED Working Paper Series 12, Institute of Economic Research, Hitotsubashi University.
    9. José Armando Cobián Álvarez & Budy P. Resosudarmo, 2019. "The cost of floods in developing countries’ megacities: a hedonic price analysis of the Jakarta housing market, Indonesia," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 21(4), pages 555-577, October.
    10. Jose Torres-Pruñonosa & Pablo García-Estévez & Josep Maria Raya & Camilo Prado-Román, 2022. "How on Earth Did Spanish Banking Sell the Housing Stock?," SAGE Open, , vol. 12(1), pages 21582440221, March.
    11. Dimitrios A. Giannias, 1998. "A Quality of Life Based Ranking of Canadian Cities," Urban Studies, Urban Studies Journal Limited, vol. 35(12), pages 2241-2251, December.
    12. Jos魍ar𨁍ontero-Lorenzo & Beatriz Larraz-Iribas, 2012. "Space-time approach to commercial property prices valuation," Applied Economics, Taylor & Francis Journals, vol. 44(28), pages 3705-3715, October.
    13. Colin J. Barnett, 1985. "An Application of the Hedonic Price Model to the Perth Residential Land Market," The Economic Record, The Economic Society of Australia, vol. 61(1), pages 476-481, March.
    14. Lall, Somik V. & Lundberg, Mattias, 2008. "What are public services worth, and to whom? Non-parametric estimation of capitalization in Pune," Journal of Housing Economics, Elsevier, vol. 17(1), pages 34-64, March.
    15. Kuethe, Todd H. & Foster, Kenneth A. & Florax, Raymond J.G.M., 2008. "A Spatial Hedonic Model with Time-Varying Parameters: A New Method Using Flexible Least Squares," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6306, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    16. George H. Lentz & Ko Wang, 1998. "Residential Appraisal and the Lending Process: A Survey of Issues," Journal of Real Estate Research, American Real Estate Society, vol. 15(1), pages 11-40.
    17. Wolfgang Brunauer & Stefan Lang & Peter Wechselberger & Sven Bienert, 2008. "Additive Hedonic Regression Models with Spatial Scaling Factors: An Application for Rents in Vienna," Working Papers 2008-17, Faculty of Economics and Statistics, Universität Innsbruck.
    18. Stefan S. Fahrlaender, 2006. "Indirect Construction of Hedonic Price Indexes: Empirical Evidence for Private Properties in Switzerland," Diskussionsschriften dp0601, Universitaet Bern, Departement Volkswirtschaft.
    19. Liv Osland & Inge Thorsen & Jens Petter Gitlesen, 2004. "The impact of labour market accessibility on housing prices," ERSA conference papers ersa04p355, European Regional Science Association.

    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:41:y:2004:i:8:p:1521-1536. 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.