Resumen de Housing and urban location decisions in Spain: an econometric analysis with non observed heterogeneity
José E. Rodríguez Hernández, Javier Amós Barrios García
This paper examines the simultaneous individual choices in Spain as regards housing (tenure choice and demand) and urban location decisions, taking into account certain unobserved heterogeneity that exhibits the behaviour of individuals. With this aim, we propose a multinomial mixed logit model to portray household�s decisions considering four different options: homeownership according to the type of urbanization of the neighbourhood (high level urban property, medium-inferior level urban property, and rural property), and renting. Finally, we estimate housing demand controlling by sample selection. The results obtained permit us to confirm that taking into account both housing tenure and urban location, besides the unobserved heterogeneity behaviour of individuals in this context, could modify appreciably housing demand estimates for both owners and renters.
