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Precios de Arriendo y Salarios en Chile

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  • Paulo Cox
  • Víctor Pérez

Abstract

Using data from the 2004, 2006 and 2009, Social Protection Survey (Encuesta de Protección Social), in this article we show evidence that suggests that in Chile the rent expenditure to labor income ratio is constant across regions and through time. We use this finding in order to parametrize a canonical theoretical localization model. We contrast the model’s predictions with our data. We find that small wage differences account for a significant share of the differences we observe in housing rents across regions.

Suggested Citation

  • Paulo Cox & Víctor Pérez, 2016. "Precios de Arriendo y Salarios en Chile," Working Papers Central Bank of Chile 781, Central Bank of Chile.
    • Handle: RePEc:chb:bcchwp:781
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    File URL: https://www.bcentral.cl/documents/33528/133326/DTBC_781.pdf
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    1. François Ortalo-Magné & Sven Rady, 2006. "Housing Market Dynamics: On the Contribution of Income Shocks and Credit Constraints ," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 73(2), pages 459-485.
    2. Stijn Van Nieuwerburgh & Pierre-Olivier Weill, 2010. "Why Has House Price Dispersion Gone Up?," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 77(4), pages 1567-1606.
    3. John M. Quigley, 1999. "Real Estate Prices and Economic Cycles," International Real Estate Review, Global Social Science Institute, vol. 2(1), pages 1-20.
    4. López, Esteban & Aroca, Patricio, 2012. "Estimación de la inflación regional de los precios de la vivienda en Chile," El Trimestre Económico, Fondo de Cultura Económica, vol. 0(315), pages .601-630, julio-sep.
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