Academic Journal
House Prices and Time on the Market in Competitive Search ∗
| العنوان: | House Prices and Time on the Market in Competitive Search ∗ |
|---|---|
| المؤلفون: | Antonia Díaz, Belén Jerez |
| المساهمون: | The Pennsylvania State University CiteSeerX Archives |
| المصدر: | http://www.bde.es/investigador/papers/sie0833.pdf. |
| سنة النشر: | 2008 |
| المجموعة: | CiteSeerX |
| مصطلحات موضوعية: | Housing prices, time on the market, search frictions, price competition. JEL Classification, R31 |
| الوصف: | Some salient stylized facts of the housing sector are hard to reconcile with the Walrasian market paradigm. These include the high volatility of prices and sales relative to GDP, the co-movement of these variables and their negative correlation with time on the market, the high volatility of housing construction and its slow response to changes in prices and vacancies. We build a search equilibrium model of the housing market which is consistent with these facts. Our model captures the illiquidity of housing assets. Throughout their lives, households experience idiosyncratic shocks that affect how much they value their residence (e.g. their job or their size changes over time). When hit by a shock, households become mismatched and seek to move. Potential buyers take time to locate an appropriate unit. Competitive market forces operate, whereby owners of vacant units may post low prices in order to get more visits and sell their property faster. We characterize a steady-state equilibrium in the short-run (when the housing stock is fixed) and in a long-run where housing construction is endogenous but sluggish. We calibrate our economy to reproduce selected aggregate statistics of the U.S. economy. We find that our model economy is able to reproduce some features of the observed joint behavior of prices, sales and time on the market. |
| نوع الوثيقة: | text |
| وصف الملف: | application/pdf |
| اللغة: | English |
| Relation: | http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.167.9185; http://www.bde.es/investigador/papers/sie0833.pdf |
| الاتاحة: | http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.167.9185 http://www.bde.es/investigador/papers/sie0833.pdf |
| Rights: | Metadata may be used without restrictions as long as the oai identifier remains attached to it. |
| رقم الانضمام: | edsbas.D942B6C0 |
| قاعدة البيانات: | BASE |
| الوصف غير متاح. |