Affordability, Housing Demand and Housing Policy in Urban India.

Designing housing policies and programmes requires a careful estimation of household affordability and demand for housing. The efficiency of housing subsidies would depend on price elasticities of housing demand. Different households have different perceptions of housing demand based on their econom...

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Publicado en:Urban Studies (Routledge) Vol. 35; no. 11; pp. 2111 - 2130
Autores principales: Tiwari, Piyush, Parikh, Jyoti
Formato: Artículo
Publicado: Taylor & Francis Ltd Nov98
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Acceso en línea:Ver este registro en EBSCOhost
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          Tiwari, Piyush
          Parikh, Jyoti
      su:
        Housing
        Household surveys
        India
      sug:
        subj:
          India
          Housing
          Household surveys
      ab: Designing housing policies and programmes requires a careful estimation of household affordability and demand for housing. The efficiency of housing subsidies would depend on price elasticities of housing demand. Different households have different perceptions of housing demand based on their economic and demographic factors. We estimate the demand function of housing for urban India using step econometric analysis. The first step estimates the hedonic price index for states and in the second step the demand for housing is estimated as a function of economic and household characteristics. The problem of multicollinearity is observed with the data. Ridge regressions are used to correct for multicollinearity and to obtain efficient estimates. The results indicate that the housing demand is inelastic with respect to income and price. The income elasticity is 0.75 while price elasticity is slightly less than - 1. A further analysis to estimate income and price elasticities for different income classes as well as states has also been carried out. We comment on the efficiency of housing subsidies based on our results. The paper concludes with some policy questions.
      pubtype: Academic Journal
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    language: English
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      custom: Copyright of Urban Studies (Routledge) is the property of Taylor & Francis Ltd and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use.
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