Housing-Market Segmentation and Demand for Housing Attributes: Some Empirical Findings

In this paper, we have empirically estimated demand equations for housing attributes, using a two-step approach in conformity with the procedure proposed by Sherwin Rosen. The identification problem inherent in Rosen's procedure has been avoided by estimating separate equations for distinct market segments in the first step. The estimates of the demand functions obtained in the second step are consistent with theoretical expectations.