Gasto y tenencia de vivienda en las ciudades de Quito, Guayaquil, Cuenca y Machala: determinantes socio-económicos

Abstract

This article estimates a model that combines the choice of tenure and expenditure of services in housing in the Ecuador´s market and its main cities Quito, Guayaquil and Cuenca, including Machala; in which a two-stage estimation procedure is used. The hypothesis of permanent income and demographic variables are included in the analysis. The study uses data collected at the household level by the Living Conditions Survey, INEC for the year 2014. The results show that property rates are high in Ecuador and all its cities. The probability of a family owning their home increases with permanent income, age, and household size. There is a restriction associated with spending because: if a family decides between buying or renting a house and how much to spend on services, it spends less than if it only decides the level of expenditure to be made. Permanent income and family size affects significantly the household consumption for households. The results of the analysis and the estimated income elasticities of demand are comparable and consistent with the results reported for other developing countries.