Threshold Effect of Rural Households' Decision on House Renting:Evidence from 24 Villages in the Peri-urban Area of Hangzhou
2011
The purpose of this paper is to test whether there is the threshold effect within the rural households' decision on house renting.Based on the model of housing supply decisions,this paper proposed several theoretical hypotheses, and further validated the hypotheses through a set of first-hand data collected from 465 households in 24 villages of Hangzhou in 2010.The results showed that significant threshold effect exists in households' decision on renting house in the case study areas.The endowment of the house available for renting had little effect on renting decisions.But it significantly impacted on the potential area for renting supply.Factors such as the increased floors and rooms could debase the threshold of renting out,i.e.,more possibility of renting out.
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