# Housing the Poor in the Developing World: Methods of Analysis, Case Studies, and Policy

By A. Graham Tipple; Kenneth G. Willis | Go to book overview

8

Discriminant analysis

Tenure choice and demand for housing services in Kumasi, Ghana

Kenneth G. Willis and A. Graham Tipple

INTRODUCTION

The classification of ‘individuals’ into separate groups on the basis of their observed characteristics is undertaken in many fields of housing analysis. The classification may refer to types of spatial area; types of settlement; housing neighbourhoods; house types; housing tenure; household types; housing applicants; or people in housing need.

The term ‘individuals’ is used here in a statistical sense, to denote any physical object, sociological or economic phenomenon, that is the subject of inquiry. The ‘individual’ may be a person or a household with certain characteristics; an area with certain features (e.g. a deprived urban housing area).

Classification and clustering analysis is now a commonly used statistical technique to classify individuals into groups on the basis of common characteristics. For example, it has been used to classify geographical areas into types (Webber and Craig, 1978) and residential neighbourhoods (Webber, 1978).

Problems of classification have long been recognised and have been discussed in a statistical sense by Everitt and Dunn (1983) and in a geographical context by Johnson (1976). Essentially they depend upon (a) what criteria are used to classify objects into discrete categories (b) the method of processing the data, for example, statistically minimising sums of squares within groups, or some alternative decision rule; and (c) the level of aggregation in the classification. Varying any of these may vary the discrete classification produced.

This chapter discusses a problem of a fundamentally different kind. Given the existence of two or more groups, i.e. a classification of individual objects into discrete categories; and given that known individuals certainly belong to group 1, and that other individuals are known for certain to come from group 2, what variables best

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Housing the Poor in the Developing World: Methods of Analysis, Case Studies, and Policy

• Title Page iii
• Contents v
• Figures vii
• Tables ix
• Preface xv
• 1 - Introduction to Housing Analysis and an Overview 1
• 2 - Participant Observation 16
• 3 - Cultural Change Analysis 35
• 4 - Time Series Analysis 62
• Notes 80
• 5 - Comparative Analysis 81
• 6 - Analysis of Government Mortgage Records 96
• 7 - Ratio Analysis 113
• 8 - Discriminant Analysis 126
• 9 - Regression Analysis 143
• 10 - Econometric Analysis 169
• Notes 188
• 11 - Contingent Valuation 189
• 12 - Discounted Cash Flow Analysis 208
• 13 - Cost-Benefit Analysis 234
• 14 - Methods of Analysis and Policy 258
• Bibliography 262
• Index 279
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