Publication:
House prices, sales, and time on the market : a search-theoretic framework

Simple item page
dc.affiliation.dptoUC3M. Departamento de Economíaes
dc.contributor.authorDíaz, Antonia
dc.contributor.authorJerez, Belén
dc.contributor.editorUniversidad Carlos III de Madrid. Departamento de Economía
dc.date.accessioned2010-11-30T19:17:16Z
dc.date.available2010-11-30T19:17:16Z
dc.date.issued2010-10
dc.description.abstractWe build a search model of the housing market which captures the illiquidity of housing assets. In this model, households experience idiosyncratic shocks over time which affect how much they value their residence (e.g. the location of their job could change). When hit by a shock, households become mismatched and seek to buy a new home. Yet they take time to locate an appropriate housing unit and to sell their current home. Competitive forces are present in the housing market since, by posting lower prices, sellers increase the average number of buyer visits they get and sell their property faster. We characterize a stationary equilibrium for a fixed housing stock. We then calibrate a stochastic version of the model to reproduce selected aggregate statistics of the U.S. economy. The model is consistent with the high volatility of prices, sales and average time on the market, the positive correlation of prices and sales, and the negative correlation of prices and average time on the market observed in the data. This is not the case when we consider the perfectly competitive version of the model
dc.format.mimetypeapplication/pdf
dc.format.mimetypeapplication/octet-stream
dc.format.mimetypeapplication/octet-stream
dc.identifier.issn2340-5031
dc.identifier.repecwe1033
dc.identifier.urihttps://hdl.handle.net/10016/9752
dc.language.isoeng
dc.relation.ispartofseriesUC3M Working papers. Economics
dc.relation.ispartofseries10-33
dc.rightsAtribución-NoComercial-SinDerivadas 3.0 España
dc.rights.accessRightsopen access
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.subject.ecienciaEconomía
dc.subject.jelR31
dc.subject.jelD83
dc.subject.jelD40
dc.subject.otherHouse prices
dc.subject.otherSales
dc.subject.otherTime on the market
dc.subject.otherSearch frictions
dc.subject.otherCompetitive search
dc.titleHouse prices, sales, and time on the market : a search-theoretic framework
dc.typeworking paper*
dspace.entity.typePublication
Files
Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
we1033.pdf
Size:
711.05 KB
Format:
Adobe Portable Document Format
Description:
Download
Collections
DE - Working Papers. Economics. WE
Economists Online