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Econometric modelling of risk adverse behaviours of entrepreneurs in the provision of house fittings in China

Construction Economics and Building

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Field Value
 
Title Econometric modelling of risk adverse behaviours of entrepreneurs in the provision of house fittings in China
 
Creator Li, Rita Yi Man
 
Subject Economics
imperfect information, risk, entrepreneur, fittings, Probit model, housing.
Risk
 
Description Entrepreneurs have always born the risk of running their business. They reap a profit in return for their risk taking and work. Housing developers are no different. In many countries, such as Australia, the United Kingdom and the United States, they interpret the tastes of the buyers and provide the dwellings they develop with basic fittings such as floor and wall coverings, bathroom fittings and kitchen cupboards. In mainland China, however, in most of the developments, units or houses are sold without floor or wall coverings, kitchen  or bathroom fittings. What is the motive behind this choice? This paper analyses the factors affecting housing developers’ decisions to provide fittings based on 1701 housing developments in Hangzhou, Chongqing and Hangzhou using a Probit model. The results show that developers build a higher proportion of bare units in mainland China when: 1) there is shortage of housing; 2) land costs are high so that the comparative costs of providing fittings become relatively low.
 
Publisher UTS ePRESS
 
Contributor —
 
Date 2012-03-09
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
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Format application/pdf
 
Identifier http://epress.lib.uts.edu.au/journals/index.php/AJCEB/article/view/2432
10.5130/AJCEB.v12i1.2432
 
Source Construction Economics and Building; Vol 12, No 1 (2012): AJCEB; 72-82
2204-9029
 
Language eng
 
Relation http://epress.lib.uts.edu.au/journals/index.php/AJCEB/article/view/2432/2818
 
Coverage —
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Rights Copyright (c) 2012 Rita Yi Man Li
http://creativecommons.org/licenses/by/4.0