The Economic and Demographic Effects on Housing Tenure Choice in Pakistan
Dr. Sabahat Subhan, Dr. Eatzaz Ahmad

This paper provides an in-depth analysis of homeownership in Pakistan based on micro-level household data of 2004-05. To analyze homeownership at the country level, probability function is estimated by using linear, Probit and Logit models. Since the presence of highly insignificant parameters in the regression equation is expected to have eroded the quality of other parameters. Therefore, stepwise elimination procedure is applied to drop insignificant variables in the light of Theil’s Benchmark Criterion. The interpretation of regression coefficient in the non-linear probability models is not very straightforward. Therefore probability derivatives are computed for all the independent variables. The results of our analysis indicate that there are several demographic, social and economic factors, which are responsible for the variation in decision regarding homeownership across households. Among these factors: household size, age, and education of household head, effects positively in this decision. Whereas sex (if household head is male), number of earners in the household and residential location of the household effects negatively in the decision of homeownership.

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