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Methods of deriving factors influencing housing tenure choice in the Czech Republic

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ŠPALKOVÁ Dagmar ŠPALEK Jiří

Rok publikování 2013
Druh Článek ve sborníku
Konference Proceedings of the 31st International Conference: Mathematical Methods in Economics 2013
Fakulta / Pracoviště MU

Ekonomicko-správní fakulta

Citace
Obor Ekonomie
Klíčová slova housing; tenure choice; factors
Popis One of the key decisions to be made by any household is the choice between owning or renting their home, which is known in specialized literature as tenure choice. The paper examines the potential factors affecting housing tenure choice decision (rent or own) in the Czech Republic. To derive these factors we employ traditional approach via econometric model with logistic regression (probit model)drawing on sample data. In addition, we consider possible pros and cons of introduction of other approaches e.g. hierarchical model of tenure choice. Analysis covers period of 2005-2011 and makes use of the data coming from investigation EU-SILC in the Czech Republic. Preliminary results of the basic (probit) model testify to the fact that tenure choice in Czech Republic is influenced by the factors similar to those in other countries – household income, marital status of the household head and household size. On the other hand, the influence of other demographic characteristics of the household head (gender or age) has not been confirmed. Analysis of the tenure choice (i.e. conditional probabilities of choosing housing type) will be accompanied by detailed analysis of households who have moved during the analyzed period.
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