Communications for Statistical Applications and Methods

The Korean Statistical Society (한국통계학회)
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Bayesian quantile regression analysis of Korean Jeonse deposit

  • Nam, Eun Jung (Department of Statistics, Ewha Womans University) ;
  • Lee, Eun Kyung (Department of Statistics, Ewha Womans University) ;
  • Oh, Man-Suk (Department of Statistics, Ewha Womans University)
  • Received : 2018.02.20
  • Accepted : 2018.08.10
  • Published : 2018.09.30
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Abstract

Jeonse is a unique property rental system in Korea in which a tenant pays a part of the price of a leased property as a fixed amount security deposit and gets back the entire deposit when the tenant moves out at the end of the tenancy. Jeonse deposit is very important in the Korean real estate market since it is directly related to the residential property sales price and it is a key indicator to predict future real estate market trend. Jeonse deposit data shows a skewed and heteroscedastic distribution and the commonly used mean regression model may be inappropriate for the analysis of Jeonse deposit data. In this paper, we apply a Bayesian quantile regression model to analyze Jeonse deposit data, which is non-parametric and does not require any distributional assumptions. Analysis results show that the quantile regression coefficients of most explanatory variables change dramatically for different quantiles. The regression coefficients of some variables have different signs for different quantiles, implying that even the same variable may affect the Jeonse deposit in the opposite direction depending on the amount of deposit.

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