An Analysis of Housing Expenditure Using Semiparametric Cross-Section Models

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In this paper we model expenditure on housing for owners and renters by means of endogenous switching regression models using cross-section data. We explain the share of housing in total expenditure from family characteristics and total expenditure, where the latter is allowed to be endogenous. We apply various existing parametric and semiparametric techniques for cross-section data. Exogeneity of total expenditure is rejected for the parametric models but not for most semiparametric models. The results are compared on the basis of graphs of the estimated relationship between the budget share spent on housing and the logarithm of total expenditure and on the baisi of budget elasticities.
Original languageEnglish
Place of PublicationTilburg
Number of pages26
Publication statusPublished - 1997

Publication series

NameCentER Discussion Paper


  • sample selection
  • Engel curves
  • semiparametric cross-section models


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