| Abstract: |
We employ a multinomial probit model to understand the housing choice of
Koreans, more specifically to understand the decision factors that affect
Koreans’ housing decisions. The data used are from surveys conducted in July,
2006, and we use the Gibbs sampling technique in analyzing them. Apparently
the housing decision is based on three dimensions–types of housing, size of
places, and home ownership. A household may make its decision by
simultaneously considering these three dimensions given its income and
decision factors. Therefore, it would be ideal to categorize the alternatives
based on these three dimensions. Due to the limited data, we treated the home
ownership decision as if it were given outside the model or, in other words,
as if a household made the decision before taking the type and size into
account. From the results, we can see the followings: Firstly, the estimate of
the coefficient of the alternative specific variables is negative and
significant in all equations. Secondly, a household which decides to purchase
housing is more likely to buy AS rather than HS. This is understandable
considering Koreans’ inclination toward apartments. |