The first step on the housing ladder : a natural experiment in Hong Kong
Journal of Housing Economics
Ladder effect, Housing ladder, Logit model, Natural experiment, Public housing privatization
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.
Copyright © 2009 Elsevier Inc.
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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