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The purpose of this study is to test the hypothesis that real estate ownership contributes to life satisfaction in transition countries.Design/methodology/approachLife in Transition survey data are used to model reported life satisfaction using ordinary least squares, ordered probit, generalized ordered logit and bivariate probit models. The hypothesis tested is whether real estate ownership is associated with greater reported life satisfaction.FindingsEmpirical results from the variety of empirical models estimated strongly support the hypothesis that real estate ownership is associated with greater reported life satisfaction in transition countries.Research limitations/implicationsAnalysis is limited because life satisfaction is self-reported and specifically for residents of transition countries.Practical implicationsResults confirm that ownership of a home, second home or land parcel is associated with greater life satisfaction.Social implicationsReal estate ownership can be an effective means to improve life satisfaction, especially in societies needing such improvements.Originality/valueThis is the first study of the link between real estate ownership and life satisfaction specifically in transition countries, and using a robust set of empirical models to address issues of ordinal dependent variables, varying coefficient estimates across dependent variable response categories, endogeneity and causality.
Journal of European Real Estate Research – Emerald Publishing
Published: Nov 20, 2019
Keywords: Home ownership; Life satisfaction; Transition countries; Land ownership; Second home ownership
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