Title Page
Contents
Abstract 8
국문초록 11
Ⅰ. Introduction 14
Ⅱ. Housing Market in Korea 18
1. An Overview 18
1.1 Housing demand and supply 18
1.2 Rapid Increase of housing price 27
2. Housing as a household s investment instrument 28
2.1 Financial market in Korea 29
2.2 Returns and risks of investment assets in Korea 30
2.3 Spread of returns between financial and housing assets 33
2.4 Household s housing finance 35
2.5 Household s investment behavior by wealth 39
3. Contractual response in the Korean rental housing market 40
3.1 Types of rental housing contract 40
3.2 Landlord's and tenant's reservation rent 43
3.3 Landlord s and tenant s contractual preference in the rental houing market 46
3.4 Rental housing contract choice by wealth 49
3.5 Other characteristics of Chonse Contract 51
Ⅲ. Contractual Choice of Different Endowment Households in the Rental Housing Market 55
1. Introduction 55
2. The model 58
2.1 Literature review 58
2.2 Model Set-up 61
2.3 Tenant s behavior and rental housing demand 64
2.3.1 Contract R 64
2.3.2 Contract D 67
2.4 Landlord s behavior and rental housing supply 73
2.4.1 Contract R 74
2.4.2 Contract D 75
2.5 Equilibrium housing service, rent and deposit 76
2.5.1 Definition of equilibrium 76
2.5.2 Regime R 77
2.5.3 Regime D 80
2.5.4 Regime Q 87
3. Implication and restriction of the model 92
Ⅳ. Conclusion 97
Reference 99
Appendix 104
Appendix 1: Characteristics of the unconstrained and constrained willingness-to-pay deposit curves 104
Appendix 2: Proof of Proposition 3 106
Appendix 3: Proof of Corollary 110
Appendix 4: Proof of Proposition 4 110
Appendix 5: Owner-occupier's behavior 112
[Table 1.1] Housing Stock and Rate of Housing Supply 18
[Table 1.2] Housing Supply Ratio of Countries 21
[Table 1.3] Comparative Housing Conditions of Countries 22
[Table 1.4] Population Growth in Korea 24
[Table 1.5] Housing Investment to GDP(1995 Constant Price) 25
[Table 1.6] Housing Investment Ratio of the Developed Countries 26
[Table 1.7] Price Index in Korea 27
[Table 2.1] Feature of Assets in Korea 32
[Table 2.2] Household Asset Accumulation in Korea 33
[Table 2.3] Housing Price Increase and Returns of Financial Assets in Korea 34
[Table 2.4] Housing Loans Outstanding by Institutions 36
[Table 2.5] Countries' Housing Credit Portfolio(1993) 38
[Table 3.1] Types of Rental Contracts and Their Proportions 42
[Table 3.2] Proportions of Contract Types in Different Housing 49
[Table 3.3] Household Income Change by Contract Type 50
[Figure 1] Two different endowment tenant's Willingness-to-pay rent curves under Contract R 67
[Figure 2] Two different tenant's willingness-to-pay deposit curves under Contract D 72
[Figure 3] Rental housing market equilibrium in Regime R 79
[Figure 4] Rental housing market equilibrium in Regime D 86
[Figure 5] Rental housing market equilibrium in Regime Q 89