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Have We Built Too Large? A study of the optimal size of student housing in Lund

Josefsson, Pontus LU (2016) NEKN01 20152
Department of Economics
Abstract
This essay investigates what housing size is the optimal for the average student in Lund. The optimal housing size for the average student is defined as the size that maximizes the average student’s net benefit from size in monetary terms. It is found by equating the marginal willingness to pay for size and the marginal cost for size. The marginal willingness to pay is derived from estimates of choice models (multinomial logit, nested logit, and random parameters logit) estimated on data sampled from students at Lund University. The marginal cost is derived from estimates of a hedonic regression model
estimated on data from AF Bostäder. The optimal housing size estimates for the average
student in Lund is in the range 19.0-24.8 square... (More)
This essay investigates what housing size is the optimal for the average student in Lund. The optimal housing size for the average student is defined as the size that maximizes the average student’s net benefit from size in monetary terms. It is found by equating the marginal willingness to pay for size and the marginal cost for size. The marginal willingness to pay is derived from estimates of choice models (multinomial logit, nested logit, and random parameters logit) estimated on data sampled from students at Lund University. The marginal cost is derived from estimates of a hedonic regression model
estimated on data from AF Bostäder. The optimal housing size estimates for the average
student in Lund is in the range 19.0-24.8 square meters. The result can be used when
planning new student housing in Lund. The method can be applied to any housing market
as long as the estimates from the hedonic regression model can be interpreted as the
marginal cost. For this to hold, as in this case, the data must be generated by a housing
company that reinvests all profit into the company. Moreover, the method is not only
applicable to housing size, but to virtually any housing service there is. (Less)
Please use this url to cite or link to this publication:
author
Josefsson, Pontus LU
supervisor
organization
course
NEKN01 20152
year
type
H1 - Master's Degree (One Year)
subject
keywords
housing size, student housing, discrete choice, logit, hedonic regression
language
English
id
8521724
date added to LUP
2016-02-11 14:38:11
date last changed
2016-02-11 14:38:11
@misc{8521724,
  abstract     = {This essay investigates what housing size is the optimal for the average student in Lund. The optimal housing size for the average student is defined as the size that maximizes the average student’s net benefit from size in monetary terms. It is found by equating the marginal willingness to pay for size and the marginal cost for size. The marginal willingness to pay is derived from estimates of choice models (multinomial logit, nested logit, and random parameters logit) estimated on data sampled from students at Lund University. The marginal cost is derived from estimates of a hedonic regression model
estimated on data from AF Bostäder. The optimal housing size estimates for the average
student in Lund is in the range 19.0-24.8 square meters. The result can be used when
planning new student housing in Lund. The method can be applied to any housing market
as long as the estimates from the hedonic regression model can be interpreted as the
marginal cost. For this to hold, as in this case, the data must be generated by a housing
company that reinvests all profit into the company. Moreover, the method is not only
applicable to housing size, but to virtually any housing service there is.},
  author       = {Josefsson, Pontus},
  keyword      = {housing size,student housing,discrete choice,logit,hedonic regression},
  language     = {eng},
  note         = {Student Paper},
  title        = {Have We Built Too Large? A study of the optimal size of student housing in Lund},
  year         = {2016},
}