Quantitative and qualitative demand for slum and non-slum housing in Delhi: Empirical evidences from household data

Ahmad, Sohail; Choi, Mack Joong; Ko, Jinsoo

doi:10.1016/j.habitatint.2012.02.003

Cited by 31 publications

(30 citation statements)

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“…Notes ***: p-value < 0.01, **: p-value < 0.05, *: p-value < 0.1; DV Total Floor Area (log); slum samples include both owner and renter households corresponding housing consumption by 4.2, 4.5, and 2.6 %, ceteris paribus. The income elasticities are consistent with previous studies, which showed that income elasticities in developing countries are inelastic, with little difference between owner and renter households (Ahmad et al 2013;Malpezzi and Mayo 1987;Tiwari and Parikh 1998). The income elasticities are smaller in magnitude from the earlier study in urban India, where income elasticities for both owner and renter households were 0.9 (Tiwari and Parikh 1998), and urban Bangladesh, where income elasticities for owner, renter, and slums were 0.69, 0.67, and 0.39, respectively (Ahmad 2015).…”

Section: P-valuesupporting

confidence: 91%

Housing Poverty and Inequality in Urban India

Ahmad

2015

Poverty Reduction Policies and Practices in Developing Asia

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Inequitable distribution of resources, including physical capital such as housing, poses a threat to sustainable development. Employing a case of housing in urban India, focusing on renter and slum dwellers, this study documents housing inequality and poverty, examines whether and why there is a gap in living standards (measured by dwelling size), and estimates the demand for housing. The study uses decomposition analysis to identify causes of inequality and estimates demand for housing among owner, renter and slum dwellers, employing a national representative microdata over a survey of 50,000 households. The results revealed that the average floor area consumption in renter/slum households is about twothird of the owner households, ceteris paribus. The reason for poor quality of renter/slum dwellings is not limited to differences in endowment levels, but also includes different 'rates of return' to these endowments. In order to enhance housing consumption in renter/slum dwellers, in addition to income improvement strategies, there needs to be a focus on skills upgradation and provision of a stable employment base. Moreover, renters/slums dwellers are concentrated in million plus cities and in the western and eastern regions of the country. Therefore, specific housing programs should be designed to target these regions.Keywords Living standard · Housing · Poverty · Inequality · Renter · Slum · India S. Ahmad Institute for the Advanced Study of Sustainability (UNU-IAS), Uitned Nations University, Tokyo, Japan S. Ahmad Tokyo Institute of Technology, Tokyo, Japan S. Ahmad (*) Laboratory for Integrated Research and Action for Human Settlements (LabSet), D92, Second Floor, Shaheen Bagh, Jamia Nagar, 110025 New Delhi, India e-mail: architectsohail@gmail.com 108 S. Ahmad IntroductionIndia has the second largest urban population in the world (after the PRC) with 377 million people (Census of India 2011b). Urban India is characterized by severe housing poverty as well as inequality, with about 24 million housing shortages in 2007 (NBO 2007) and about 93 million slum dwellers spread unevenly in 49,000 slums across the country (NBO 2010). 1 Moreover, one-third of urban dwellers live in rental accommodations, which are poorly equipped. For instance, renter households have lower living standards than the owner households and are almost comparable to slums on certain indicators. Therefore, slums as well as rental dwellings can be perceived to be representative of housing poverty and inequality. Slums have been widely discussed among researchers and policy-makers (Angeles et al. 2009;Dupont 2008; Habitat 2003a, b;Mathur 2009). Recently, a serious attempt has been made through the ambitious program Rajiv Awas Yojana (RAY) to make India slumfree within five years (MHUPA 2011). In contrast, there are few studies dealing with issues of rental dwellings, despite their significance for the urban poor in developing economies (Habitat 2003a, b). The few studies that have dealt with rental dwellings have focused on the low-in...

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Section: P-valuesupporting

confidence: 91%

Housing Poverty and Inequality in Urban India

Ahmad

2015

Poverty Reduction Policies and Practices in Developing Asia

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“…() modeled the individual demand for housing over the life cycle by showing the aggregate implications of their behavior. Ahmad et al () estimated qualitative and quantitative demand for housing using a household survey in Delhi and indicated that housing demand is inelastic with respect to price and income. These kinds of simulations were based on mathematical equations and assumptions rather than consumer preferences.…”

Section: Literature Review and Conceptual Frameworkmentioning

confidence: 99%

Did I Make the Right Decision? Attributes That Influence People's Choice of City of Residence

Shtudiner

Kantor

2017

Rev Urban & Reg Develop

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This paper aims to measure personal preferences regarding various attributes that affect choice of city of residence in the long term. A conjoint questionnaire was formulated in order to measure consumer perception of the importance of various attributes, such as quality of education, distance from work, average property price, and distance from family. Each attribute is composed of two categorical levels: high and low. The findings reveal which of the attributes is the most effective based on the decision-making process and shed light on which combination of attributes is most preferred by respondents. The paper addresses a new view of personal definition to buy or rent real estate when selection of the "proper" real estate relative to one's profile is taken into account. This view is of value to a variety of real estate professionals engaged in suggesting and evaluating value to consumers.

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“…In a study of housing demand in Delhi, Ahmad et al (2012) found that, outside of slums, housing demand is relatively responsive to income, and less responsive to changes in price. Within slums, the opposite is true, suggesting that slum dwellers have to prioritize other consumption as their incomes rise, consistent with a hierarchical model of consumption.…”

Section: Prices Of Satisfiers Of Materials Needsmentioning

confidence: 99%

“…Pedro (2009) categorizes responses to different amounts of living space as "pathological", "negatively satisfied", "neutral", and "positively satisfied". His categories provide a useful frame for thinking about these non-satiable but necessary material satisfiers, while Ahmad's study of housing demand (Ahmad et al, 2012) provides insights into different consumer responses at different levels of satisfaction. It is plausible that Ahmad's slum residents, who were much more responsive to quantity of living space than quality, were somewhere in the range from pathological to negative satisfaction.…”

Section: Satisfiability and Satiabilitymentioning

confidence: 99%

Material needs and aggregate demand

Kemp-Benedict

2013

The Journal of Socio-Economics

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A central conclusion of the standard theory of consumption is that consumers' preferences can be taken as theoretical primitives. Special categories of consumption, such as "basic needs", or of goods, such as "subsistence goods" are seen as extra theoretical baggage that add few, if any, insights. This theoretical orientation has been absorbed into the theory of aggregate demand, but the aggregate theory has a serious problem that is not shared by the individual-level theory: no matter how well-behaved the individual-level demand functions may be, the aggregate-level function can take on almost any form. This result follows from the SMD theorem, named after Sonnenschein, Mantel, and Debreu, who developed the theory; Kirman and Koch strengthened the results, and the SMD-KK theorem poses a fundamental challenge to models linking micro and macroeconomics. A standard response to the aggregation problem is to introduce a representative agent, but this merely sidesteps the problem. We argue that the aggregation problem arises, in part, because of the exclusion of needs from the theory. Specifically, we argue that material needs-such as basic needs for energy, water, food, and shelter-must be included as theoretical primitives because both the needs and the satisfiers of those needs are universal. We construct a microeconomic model with material needs and show that the form of the aggregate excess demand function is not completely arbitrary, so the SMD-KK theorem does not apply. We discuss the implications of this result.

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Quantitative and qualitative demand for slum and non-slum housing in Delhi: Empirical evidences from household data

Cited by 31 publications

References 16 publications

Housing Poverty and Inequality in Urban India

Housing Poverty and Inequality in Urban India

Did I Make the Right Decision? Attributes That Influence People's Choice of City of Residence

Material needs and aggregate demand

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