The first step on the housing ladder : a natural experiment in Hong Kong

Document Type

Journal article

Source Publication

Journal of Housing Economics

Publication Date

3-1-2009

Volume

18

Issue

1

First Page

59

Last Page

67

Publisher

Academic Press

Keywords

Ladder effect, Housing ladder, Logit model, Natural experiment, Public housing privatization

Abstract

The article presents and illuminates evidence, based on recent Hong Kong experience, indicating the existence of a "housing ladder effect" when housing prices increase or decrease. An increase of housing equity at the bottom of the ladder tends to translate into a trading up activity that will both increase housing market turnover and buoy up the entire housing market. Based on a natural experiment through the introduction of a public housing privatization scheme, this article demonstrates the importance of the first step on the housing ladder using a logit model.

DOI

10.1016/j.jhe.2009.02.003

Print ISSN

10511377

E-ISSN

10960791

Publisher Statement

Copyright © 2009 Elsevier Inc.

Access to external full text or publisher's version may require subscription.

Full-text Version

Publisher’s Version

Language

English

Recommended Citation

Ho, L. S., & Wong, W. C. G. (2009). The first step on the housing ladder: A natural experiment in Hong Kong. Journal of Hosing Economics, 18(1), 59-67. doi: 10.1016/j.jhe.2009.02.003

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