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Housing‐Market Segmentation and Demand for Housing Attributes: Some Empirical Findings
Author(s) -
Bajic Vladimir
Publication year - 1985
Publication title -
real estate economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.064
H-Index - 61
eISSN - 1540-6229
pISSN - 1080-8620
DOI - 10.1111/1540-6229.00341
Subject(s) - conformity , identification (biology) , economics , market segmentation , econometrics , segmentation , microeconomics , mathematical economics , computer science , psychology , artificial intelligence , social psychology , botany , biology
In this paper, we have empirically estimated demand equations for housing attributes, using a two‐step approach in conformity with the procedure proposed by Sherwin Rosen. The identification problem inherent in Rosen's procedure has been avoided by estimating separate equations for distinct market segments in the first step. The estimates of the demand functions obtained in the second step are consistent with theoretical expectations.