{"id":{"repo_id":"rosario","oai_identifier":"oai:repository.urosario.edu.co:10336/19960"},"canonical_url":"https://search.dev.ndltd.org/etd/rosario/oai:repository.urosario.edu.co:10336/19960","repository":{"repo_id":"rosario","name":"Universidad del Rosario","base_url":"https://repository.urosario.edu.co/oai/request"},"display":{"title":"Housing Quality and Tenure Choice in Bogota","abstract":"Empirical housing articles have been scarce in developing countries. It results paradoxical given that homeownership and housing quality have continuously been included at the top of the developing countries political agendas. The present paper provides elements that explain the own/rent decision and the quality dwelling choice in the context of a developing country. The article follows a reduced-form approach that allows us to characterize some critical facts of the housing market equilibrium in the city of Bogota. We show that the tenure choice decision can be largely explained by the price of renting relative to owning and the permanent income. We find evidence that the poorer households delay home purchasing in contrast to the wealthier households, and the workers with unstable labor income are less likely to become homeowners. Furthermore, we estimate price and income elasticities coefficients that quantify the households' dwelling quality response to price and income variation. Thus, a 1% increase in prices reduces the average dwelling quality in 0.16% for the homeowners and 0.25% for the renters, whereas a 1% increase in permanent income increases the average dwelling quality in 0.08% both for homeowners and renters.","abstract_html":"Empirical housing articles have been scarce in developing countries. It results paradoxical given that homeownership and housing quality have continuously been included at the top of the developing countries political agendas. The present paper provides elements that explain the own/rent decision and the quality dwelling choice in the context of a developing country. The article follows a reduced-form approach that allows us to characterize some critical facts of the housing market equilibrium in the city of Bogota. We show that the tenure choice decision can be largely explained by the price of renting relative to owning and the permanent income. We find evidence that the poorer households delay home purchasing in contrast to the wealthier households, and the workers with unstable labor income are less likely to become homeowners. Furthermore, we estimate price and income elasticities coefficients that quantify the households' dwelling quality response to price and income variation. Thus, a 1% increase in prices reduces the average dwelling quality in 0.16% for the homeowners and 0.25% for the renters, whereas a 1% increase in permanent income increases the average dwelling quality in 0.08% both for homeowners and renters.","abstract_has_math":false,"creators":["Baquero Vargas, Juan Pablo"],"institution":"Universidad del Rosario","degree_name":null,"degree_level":null,"degree_discipline":null,"degree_department":null,"school":null,"contributors":[],"advisors":[],"committee_chairs":[],"committee_members":[],"year":2019,"date_issued":"2019-06-25","date_published":"2019-06-25","updated_at":"2026-07-27T20:46:23Z","subjects":["Colombia","Housing demand","Real estate economics","Economía de la tierra","Oferta de vivienda","Política de vivienda","Países en desarrollo","Mercado de la vivienda"],"languages":["spa"],"rights":["info:eu-repo/semantics/openAccess"],"rights_urls":["http://creativecommons.org/licenses/by-nc-nd/2.5/co/"],"identifier_entries":[{"key":"dc:identifier","label":"Identifier","values":["http://repository.urosario.edu.co/handle/10336/19960"],"render_values":[{"text":"http://repository.urosario.edu.co/handle/10336/19960","href":"http://repository.urosario.edu.co/handle/10336/19960","code":true}]}]},"links":{"outbound_url":"https://doi.org/10.48713/10336_19960","outbound_label":"DOI","outbound_source":"dc:identifier"},"metadata_groups":[{"id":"people","label":"People","entries":[{"key":"dc:creator","label":"Author","values":["Baquero Vargas, Juan Pablo"]}]},{"id":"academic_context","label":"Academic Context","entries":[{"key":"dc:date","label":"Dc Date","values":["2019-06-25","2019-07-17T23:26:44Z"]},{"key":"dc:publisher","label":"Institution","values":["Universidad del Rosario","Facultad de Economía","Maestría en Economía"]},{"key":"dc:type","label":"Dc Type","values":["info:eu-repo/semantics/masterThesis","info:eu-repo/semantics/acceptedVersion"]}]},{"id":"subjects_keywords","label":"Subjects and Keywords","entries":[{"key":"dc:subject","label":"Dc Subject","values":["Colombia","Housing demand","Real estate economics","Economía de la tierra","Oferta de vivienda","Política de vivienda","Países en desarrollo","Mercado de la vivienda"]}]},{"id":"language_rights","label":"Language and Rights","entries":[{"key":"dc:language","label":"Dc Language","values":["spa"]},{"key":"dc:rights","label":"Dc Rights","values":["info:eu-repo/semantics/openAccess","http://creativecommons.org/licenses/by-nc-nd/2.5/co/"]}]},{"id":"identifiers","label":"Identifiers","entries":[{"key":"dc:identifier","label":"Identifier","values":["https://doi.org/10.48713/10336_19960","http://repository.urosario.edu.co/handle/10336/19960"]}]},{"id":"additional","label":"Additional Metadata","entries":[{"key":"dc:description","label":"Description","values":["Empirical housing articles have been scarce in developing countries. It results paradoxical given that homeownership and housing quality have continuously been included at the top of the developing countries political agendas. The present paper provides elements that explain the own/rent decision and the quality dwelling choice in the context of a developing country. The article follows a reduced-form approach that allows us to characterize some critical facts of the housing market equilibrium in the city of Bogota. We show that the tenure choice decision can be largely explained by the price of renting relative to owning and the permanent income. We find evidence that the poorer households delay home purchasing in contrast to the wealthier households, and the workers with unstable labor income are less likely to become homeowners. Furthermore, we estimate price and income elasticities coefficients that quantify the households' dwelling quality response to price and income variation. Thus, a 1% increase in prices reduces the average dwelling quality in 0.16% for the homeowners and 0.25% for the renters, whereas a 1% increase in permanent income increases the average dwelling quality in 0.08% both for homeowners and renters.","Furthermore, we estimate price and income elasticities coefficients that quantify the households' dwelling quality response to price and income variation. Thus, a 1% increase in prices reduces the average dwelling quality in 0.16% for the homeowners and 0.25% for the renters, whereas a 1% increase in permanent income increases the average dwelling quality in 0.08% both for homeowners and renters."]},{"key":"dc:format","label":"Dc Format","values":["application/pdf"]},{"key":"dc:source","label":"Dc Source","values":["Arbelaez, M. A., Steiner, R., Becerra, A., & Wills, D. (2011). Housing tenure and housing demand in colombia.","Attanasio, O. P., Bottazzi, R., Low, H. W., Nesheim, L., & Wakefield, M. (2012). Modelling the demand for housing over the life cycle. Review of Economic Dynamics, 15(1), 1.","Belsky, E. S., Di Zhu, X., \\& McCue, D. (2006). Multiple-home ownership and the income elasticity of housing demand. Joint Center for Housing Studies, Graduate School of Design {[}and{]} John F. Kennedy School of Government, Harvard University.","Blackley, D. M., Follain, J. R., \\& Lee, H. (1986). An Evaluation of Hedonic Price Indexes for Thirty-four Large SMSAs. Real Estate Economics, 14(2), 179-205.","Cameron, A. C., & Trivedi, P. K. (2005). Microeconometrics: methods and applications. Cambridge university press.","Dietz, R. D., & Haurin, D. R. (2003). The social and private micro-level consequences of homeownership. Journal of urban Economics, 54(3), 401-450.","Di Tella, R., Edwards, S., & Schargrodsky, E. (Eds.). (2010). The economics of crime: Lessons for and from Latin America. University of Chicago Press.","Fontenla, M., & Gonzalez, F. (2009). Housing demand in Mexico. Journal of Housing Economics, 18(1), 1-12.","Goodman, A. C., \\& Kawai, M. (1982). Permanent income, hedonic prices, and demand for housing: New evidence. Journal of Urban Economics, 12(2), 214-237.","Goodman, A. C. (1988). An econometric model of housing price, permanent income, tenure choice, and housing demand. Journal of Urban Economics, 23(3), 327-353.","Goodman, A. C. (2003). Following a panel of stayers: length of stay, tenure choice, and housing demand. Journal of Housing Economics, 12(2), 106-133.","Goodman, A. C. (1978). Hedonic prices, price indices and housing markets. Journal of urban economics, 5(4), 471-484.","Henderson, J. V., & Ioannides, Y. M. (1983). A model of housing tenure choice. The American Economic Review, 73(1), 98-113.","Haurin, D. R., Hendershott, P. H., \\& Wachter, S. M. (1996). Borrowing constraints and the tenure choice of young households (No. w5630). National bureau of economic research.","Haurin, D. R., & Gill, H. L. (2002). The impact of transaction costs and the expected length of stay on homeownership. Journal of Urban Economics, 51(3), 563-584.","Ioannides, Y. M., & Zabel, J. E. (2003). Neighbourhood effects and housing demand. Journal of applied Econometrics, 18(5), 563-584.","Iacoviello, M., & Pavan, M. (2013). Housing and debt over the life cycle and over the business cycle. Journal of Monetary Economics, 60(2), 221-238.","Landvoigt, T., Piazzesi, M., & Schneider, M. (2015). The housing market (s) of San Diego. American Economic Review, 105(4), 1371-1407.","LeSage, J. P. (1999). The theory and practice of spatial econometrics. University of Toledo. Toledo, Ohio, 28, 33.","Linneman, P., & Wachter, S. (1989). The impacts of borrowing constraints on homeownership. Real Estate Economics, 17(4), 389-402.","Lustig, N. (Ed.). (2018). Commitment to equity handbook: Estimating the impact of fiscal policy on inequality and poverty. Brookings Institution Press.","Malpezzi, S., Mayo, S. K., \\& Gross, D. J. (1985). Housing demand in developing countries. Washington: World Bank.","Mayo, S. K. (1981). Theory and estimation in the economics of housing demand. Journal of Urban Economics, 10(1), 95-116.","McFadden, D. L. (1976). Quantal choice analaysis: A survey. In Annals of Economic and Social Measurement, Volume 5, number 4 (pp. 363-390). NBER.","Ortalo-Magne, F., & Rady, S. (2006). Housing market dynamics: On the contribution of income shocks and credit constraints. The Review of Economic Studies, 73(2), 459-485.","O'sullivan, A. (2007). Urban economics. McGraw-Hill/Irwin.","Piazzesi, M., & Schneider, M. (2016). Housing and macroeconomics. In Handbook of macroeconomics (Vol. 2, pp. 1547-1640). Elsevier.","Rosen, H. S. (1979). Housing decisions and the US income tax: An econometric analysis. Journal of Public Economics, 11(1), 1-23.","Robst, J., Deitz, R., & McGoldrick, K. (1999). Income variability, uncertainty and housing tenure choice. Regional Science and Urban Economics, 29(2), 219-229.","Sieg, H., Smith, V. K., Banzhaf, H. S., & Walsh, R. (2002). Interjurisdictional housing prices in locational equilibrium. Journal of urban Economics, 52(1), 131-153.","Urrutia, M., & Namen, O. M. (2012). Historia del crédito hipotecario en Colombia. Ensayos sobre política económica, 30(67), 282-306.","Yang, F. (2009). Consumption over the life cycle: How different is housing?. Review of Economic Dynamics, 12(3), 423-443.","von Graevenitz, K., & Panduro, T. E. (2015). An alternative to the standard spatial econometric approaches in hedonic house price models. Land Economics, 91(2), 386-409.","Wooldridge, J. M. (2015). Introductory econometrics: A modern approach. 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We find evidence that the poorer households delay home purchasing in contrast to the wealthier households, and the workers with unstable labor income are less likely to become homeowners. Furthermore, we estimate price and income elasticities coefficients that quantify the households' dwelling quality response to price and income variation. Thus, a 1% increase in prices reduces the average dwelling quality in 0.16% for the homeowners and 0.25% for the renters, whereas a 1% increase in permanent income increases the average dwelling quality in 0.08% both for homeowners and renters.","Furthermore, we estimate price and income elasticities coefficients that quantify the households' dwelling quality response to price and income variation. Thus, a 1% increase in prices reduces the average dwelling quality in 0.16% for the homeowners and 0.25% for the renters, whereas a 1% increase in permanent income increases the average dwelling quality in 0.08% both for homeowners and renters."],"dc:format":["application/pdf"],"dc:identifier":["https://doi.org/10.48713/10336_19960","http://repository.urosario.edu.co/handle/10336/19960"],"dc:language":["spa"],"dc:publisher":["Universidad del Rosario","Facultad de Economía","Maestría en Economía"],"dc:rights":["info:eu-repo/semantics/openAccess","http://creativecommons.org/licenses/by-nc-nd/2.5/co/"],"dc:source":["Arbelaez, M. A., Steiner, R., Becerra, A., & Wills, D. (2011). Housing tenure and housing demand in colombia.","Attanasio, O. P., Bottazzi, R., Low, H. W., Nesheim, L., & Wakefield, M. (2012). Modelling the demand for housing over the life cycle. Review of Economic Dynamics, 15(1), 1.","Belsky, E. S., Di Zhu, X., \\& McCue, D. (2006). Multiple-home ownership and the income elasticity of housing demand. Joint Center for Housing Studies, Graduate School of Design {[}and{]} John F. Kennedy School of Government, Harvard University.","Blackley, D. M., Follain, J. R., \\& Lee, H. (1986). An Evaluation of Hedonic Price Indexes for Thirty-four Large SMSAs. Real Estate Economics, 14(2), 179-205.","Cameron, A. C., & Trivedi, P. K. (2005). Microeconometrics: methods and applications. Cambridge university press.","Dietz, R. D., & Haurin, D. R. (2003). The social and private micro-level consequences of homeownership. Journal of urban Economics, 54(3), 401-450.","Di Tella, R., Edwards, S., & Schargrodsky, E. (Eds.). (2010). The economics of crime: Lessons for and from Latin America. University of Chicago Press.","Fontenla, M., & Gonzalez, F. (2009). Housing demand in Mexico. Journal of Housing Economics, 18(1), 1-12.","Goodman, A. C., \\& Kawai, M. (1982). Permanent income, hedonic prices, and demand for housing: New evidence. Journal of Urban Economics, 12(2), 214-237.","Goodman, A. C. (1988). An econometric model of housing price, permanent income, tenure choice, and housing demand. Journal of Urban Economics, 23(3), 327-353.","Goodman, A. C. (2003). Following a panel of stayers: length of stay, tenure choice, and housing demand. Journal of Housing Economics, 12(2), 106-133.","Goodman, A. C. (1978). Hedonic prices, price indices and housing markets. Journal of urban economics, 5(4), 471-484.","Henderson, J. V., & Ioannides, Y. M. (1983). A model of housing tenure choice. The American Economic Review, 73(1), 98-113.","Haurin, D. R., Hendershott, P. H., \\& Wachter, S. M. (1996). Borrowing constraints and the tenure choice of young households (No. w5630). National bureau of economic research.","Haurin, D. R., & Gill, H. L. (2002). The impact of transaction costs and the expected length of stay on homeownership. Journal of Urban Economics, 51(3), 563-584.","Ioannides, Y. M., & Zabel, J. E. (2003). Neighbourhood effects and housing demand. Journal of applied Econometrics, 18(5), 563-584.","Iacoviello, M., & Pavan, M. (2013). Housing and debt over the life cycle and over the business cycle. Journal of Monetary Economics, 60(2), 221-238.","Landvoigt, T., Piazzesi, M., & Schneider, M. (2015). The housing market (s) of San Diego. American Economic Review, 105(4), 1371-1407.","LeSage, J. P. (1999). The theory and practice of spatial econometrics. University of Toledo. Toledo, Ohio, 28, 33.","Linneman, P., & Wachter, S. (1989). The impacts of borrowing constraints on homeownership. Real Estate Economics, 17(4), 389-402.","Lustig, N. (Ed.). (2018). Commitment to equity handbook: Estimating the impact of fiscal policy on inequality and poverty. Brookings Institution Press.","Malpezzi, S., Mayo, S. K., \\& Gross, D. J. (1985). Housing demand in developing countries. Washington: World Bank.","Mayo, S. K. (1981). Theory and estimation in the economics of housing demand. Journal of Urban Economics, 10(1), 95-116.","McFadden, D. L. (1976). Quantal choice analaysis: A survey. In Annals of Economic and Social Measurement, Volume 5, number 4 (pp. 363-390). NBER.","Ortalo-Magne, F., & Rady, S. (2006). Housing market dynamics: On the contribution of income shocks and credit constraints. The Review of Economic Studies, 73(2), 459-485.","O'sullivan, A. (2007). Urban economics. McGraw-Hill/Irwin.","Piazzesi, M., & Schneider, M. (2016). Housing and macroeconomics. In Handbook of macroeconomics (Vol. 2, pp. 1547-1640). Elsevier.","Rosen, H. S. (1979). Housing decisions and the US income tax: An econometric analysis. Journal of Public Economics, 11(1), 1-23.","Robst, J., Deitz, R., & McGoldrick, K. (1999). Income variability, uncertainty and housing tenure choice. Regional Science and Urban Economics, 29(2), 219-229.","Sieg, H., Smith, V. K., Banzhaf, H. S., & Walsh, R. (2002). Interjurisdictional housing prices in locational equilibrium. Journal of urban Economics, 52(1), 131-153.","Urrutia, M., & Namen, O. M. (2012). Historia del crédito hipotecario en Colombia. Ensayos sobre política económica, 30(67), 282-306.","Yang, F. (2009). Consumption over the life cycle: How different is housing?. Review of Economic Dynamics, 12(3), 423-443.","von Graevenitz, K., & Panduro, T. E. (2015). An alternative to the standard spatial econometric approaches in hedonic house price models. Land Economics, 91(2), 386-409.","Wooldridge, J. M. (2015). Introductory econometrics: A modern approach. Nelson Education.","instname:Universidad del Rosario","reponame:Repositorio Institucional EdocUR"],"dc:subject":["Colombia","Housing demand","Real estate economics","Economía de la tierra","Oferta de vivienda","Política de vivienda","Países en desarrollo","Mercado de la vivienda"],"dc:title":["Housing Quality and Tenure Choice in Bogota"],"dc:type":["info:eu-repo/semantics/masterThesis","info:eu-repo/semantics/acceptedVersion"]},"updated_at":"2026-07-27T20:46:23Z"}