19th Annual Student Research Conference
Social Science
Demand for Housing-An Empirical Analysis
Ying Strow* and Vidhya Reddy♦
Dr. Jane Sung, Faculty Mentor
This project will rely upon the theoretical basis of demand theory as well as upon established empirical evidence concerning consumers behavior to construct an aggregate demand function for home ownership. We will basically employ the ordinary least squares method of analysis to evaluate a log-log functional form of housing demand specified with several potentially significant explanatory variables, including the purchase price of housing, the home mortgage interest rate, household income, and, a generally overlooked variable: the rental price of housing (a potential substitute for home ownership). We will further employ quarterly (where available) time series data from the census bureau for each of our variables and evaluate our model under conditions prevailing between 1988 and 2004. In doing so, we hope to gain insight into the nature of housing demand adjustments and to the responsiveness of housing demand to changes in each of our explanatory variables.
Keywords: demand theory, aggregate demand , demand function, housing demand, data, variable
Topic(s):Economics
Presentation Type: Oral Paper
Session: 12-3
Location: VH 1412
Time: 9:00
♦ Indicates Truman Graduate Student