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Microsimulation modelling of tenure choice and grants to promote home ownership
Journal article   Peer reviewed

Microsimulation modelling of tenure choice and grants to promote home ownership

G. Wood, R. Watson and P. Flatau
The Australian Economic Review, Vol.39(1), pp.14-34
2006
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Abstract

This article develops a microsimulation model of the Australian housing market that has tenure choice as its principal focus. The article sheds light on the role played by relative prices, wealth and borrowing constraints in shaping housing tenure choices. We explore the model's capabilities as an aid to policy making by reporting the findings from an impact analysis of grant programs designed to ease the transition of first home buyers into owner occupation. We find a large demand for home ownership that is not met because of borrowing constraints. The need to meet financial institutions' down payment requirements is particularly important. Government grants made available to first home buyers will ease down payment requirements, but the formal incidence of such a subsidy is found to be inequitable among potential first home buyers, and its impact is largely to bring forward purchase decisions.

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Collaboration types
Domestic collaboration
Citation topics
6 Social Sciences
6.86 Human Geography
6.86.789 Urban Housing Dynamics
Web Of Science research areas
Economics
ESI research areas
Economics & Business
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