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Title: |
An Analysis of Optimality of Housing
Investment in Korea |
| Author: |
Kim,
Kyung-Hwan; Suh, Seoung-Hwan |
| Author
Affiliation: |
Sogang U;
Yonsei U |
| Source: |
International Economic Journal, Spring 1991, v. 5, no. 1, pp. 91-103 |
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Publication Date: |
Spring 1991 |
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Abstract: |
It is often claimed that Korea has
invested too little in housing during the period of rapid urbanization.
In this paper, we first describe the trend of housing investment in
Korea and identify the determinants of the share of nation's output
allocated to housing. Then we build and estimate a simple two-sector
general equilibrium model similar to Mills (1987) to test the hypothesis
that Korea has under-invested in housing. We conclude that the
hypothesis is verified by the 1970-86 data and hence the allocation of
capital between housing and non-housing sectors was not optimal. |
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