This paper explores the plausible variables that influence choices in the Chongju housing market. A joint model of tenure and dwelling type is estimated within the multinomial logit framework. The logit model of housing choice is fitted to the whole sample and to two sub-samples, which are categorised on the basis of neighbourhood quality. The empirical results do not exhibit a uniform pattern over the three sample cases. In the case of the whole sample, housing choice is influenced by the age, educational level and occupation of household head, a dummy of school-age children, and the ratio of housing price to household income. For the households locating in the high-quality neighbourhoods, the age, educational level and occupation of household head, and the housing price to income ratio appear significant. In the second sub-group, which comprises the households choosing a poor-quality neighbourhood, the age and occupation, a dummy of school-age children, and the housing price to income ratio appear to be the responsible variables. The findings suggest that the supply of housing should be diversified to meet the diverse segments of demand in the Chongju housing market. An increasing priority should be placed on the provision of rental housing, whether detached or multiple, rather than owner-occupied apartments.
This paper applies the transaction cost framework to the analysis of the housing redevelopment process in Korea. The housing redevelopment process involves various identifiable transactions and cost-incurring hazards which originate from uncertainty about development potential and effects, interdependencies and the consequent strategic behaviours of relevant parties. Responding to the characteristics of the transactions and hazards, various forms of governance structure are institutionalised. The extant governance mechanisms fit neither perfect market nor pure hierarchy. Rather, hybrid forms of governance spanning the public and private spheres are aligned with the relevant transactions. On the other hand, a remediableness test indicates that different governance mechanisms which seem more efficient than the current ones can be identified for each stage of housing redevelopment. This finding marks a superb potential of the transaction cost approach for assessing institutional efficiency that the Pigouvian approach does not have.welfare economics supports government intervention in private affairs when market failures exist. Its disciplinary premise is that, in cases of the market failure, markets, if left to their own devices, fail to result in socially efficient allocations of resources-i.e. Pareto efficiency. Here, the traditional market failures include public goods, externalities, natural
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.