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Housing Tenure Choice and Housing Expenditures in the Czech Republic

Author

Listed:
  • Dagmar Špalková
  • Jiøí Špalek

    (Department of Public Economics, Masaryk University)

Abstract

Choosing between rented housing and homeownership, the so called housing tenure choice, is a key decision made by each household. Therefore housing economists often seek an answer to the question which factors have an impact on this decision. The paper investigates potential tenure choice determinants using an econometric model based on the sample data. Results of the analysis, making use of the investigation of EU-SILC in the CR, have testified to the fact that tenure choice is affected by the factors similar to those in other countries – household income, marital status of the household head and household size (persons per household). By contrast, the influence of other demographic characteristics of the household head (gender or age) has not been confirmed. The econometric model has also made it possible to evaluate potential impact of these factors on housing related expenses of households. In addition to the logical influence of household income, tenure choice decisions are significantly influenced by household size and residence in Prague, particularly in the rented housing sector.

Suggested Citation

  • Dagmar Špalková & Jiøí Špalek, 2013. "Housing Tenure Choice and Housing Expenditures in the Czech Republic," MUNI ECON Working Papers 11, Masaryk University, revised Aug 2013.
    • Handle: RePEc:mub:wpaper:11
    as

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    File URL: http://repec.econ.muni.cz/mub/wpaper/working%20papers/WPKVE-11_2013_Spalkova_Spalek.pdf
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    References listed on IDEAS

    as
    1. Monika Bazyl, 2009. "Factors Influencing Tenure Choice in European Countries," Central European Journal of Economic Modelling and Econometrics, Central European Journal of Economic Modelling and Econometrics, vol. 1(4), pages 371-387, December.
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    3. Boehm, Thomas P., 1981. "Tenure choice and expected mobility: A synthesis," Journal of Urban Economics, Elsevier, vol. 10(3), pages 375-389, November.
    4. Kan, Kamhon, 2000. "Dynamic Modeling of Housing Tenure Choice," Journal of Urban Economics, Elsevier, vol. 48(1), pages 46-69, July.
    5. Artle, Roland & Varaiya, Pravin, 1978. "Life cycle consumption and homeownership," Journal of Economic Theory, Elsevier, vol. 18(1), pages 38-58, June.
    6. Henderson, J Vernon & Ioannides, Yannis M, 1983. "A Model of Housing Tenure Choice," American Economic Review, American Economic Association, vol. 73(1), pages 98-113, March.
    7. Krumm, Ronald J., 1984. "Household tenure choice and migration," Journal of Urban Economics, Elsevier, vol. 16(3), pages 259-271, November.
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    Cited by:

    1. Samson Akinbamide Omobayo Adegoke & Tunde Agbola, 2020. "Housing Tenure Choice and Housing Affordability in Nigeria: A Comparative Analysis of Owners and Renters of Organized Private Sector Housing," International Journal of Social Science Studies, Redfame publishing, vol. 8(4), pages 142-149, July.

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    More about this item

    Keywords

    Housing; tenure; choice; expenditures; determinants;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • P36 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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