MORE ON STOCK DEMAND ELASTICITIES OF NON-FARM HOUSING.
In a recent comment published in the journal "Review of Economics and Statistics," economist Richard F. Muth argues that since the price of mortgage money defined in the author's original paper implies a negative effect of contract maturity on housing demand, the credit term variable in author's flo...
| Publicado en: | Review of Economics & Statistics Vol. 49; no. 4; pp. 640 - 643 |
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| Formato: | Artículo |
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MIT Press
Nov67
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=hlh&AN=4648612&site=ehost-live header: @attributes: shortDbName: hlh uiTerm: 4648612 longDbName: Humanities International Complete uiTag: AN controlInfo: bkinfo: jinfo: jid: 00346535 RMS jtl: Review of Economics & Statistics issn: 00346535 maglogo: N pubinfo: dt: Nov67 vid: 49 iid: 4 pid: 776 pub: MIT Press artinfo: ui: 4648612 10.2307/1928363 ppf: 640 ppct: 3 formats: tig: atl: MORE ON STOCK DEMAND ELASTICITIES OF NON-FARM HOUSING. aug: au: Tong Hun Lee su: Housing finance Elasticity (Economics) Demand function Muth, Richard F. Economists Regression analysis sug: subj: Housing finance Elasticity (Economics) Demand function Muth, Richard F. Economists Regression analysis ab: In a recent comment published in the journal "Review of Economics and Statistics," economist Richard F. Muth argues that since the price of mortgage money defined in the author's original paper implies a negative effect of contract maturity on housing demand, the credit term variable in author's flow demand regression is inappropriate and, therefore, that the permanent income elasticity derived from this relationship is biased. Muth also argues that the author's estimated income elasticity of about 0.809 is not conformable to the alternative estimate derived from his rental-value equation. Further experiments with the data, however, show the results that are consistent with the author's original estimate, thus rejecting Muth's criticism. The actual mortgage interest cost to a borrower on a straight-term mortgage loan is the difference between the discounting of his future interest payments and the present value of a gain or a loss associated with his repayment of the loan at the end of contract maturity. Since housing expenditures are undertaken by household or family units rather than by individual consumers, the unit of analysis in the housing demand analysis should be a household decision-making unit rather than an individual unit. Using per-family figures, the author recomputed the regression of Muth's rental-value equation in which the rental value of housing was expressed as a function of housing stock and permanent income. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: Y dt: @attributes: year: 1967 holdings: @attributes: islocal: N |
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