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Housing prices and credit constraints in competitive search

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dc.affiliation.dptoUC3M. Departamento de Economíaes
dc.contributor.authorDíaz, Antonia
dc.contributor.authorJerez, Belén
dc.contributor.authorRincón-Zapatero, Juan Pablo
dc.contributor.editorUniversidad Carlos III de Madrid. Departamento de Economíaes
dc.contributor.funderMinisterio de Economía y Competitividad (España)es
dc.contributor.funderComunidad de Madrides
dc.date.accessioned2022-07-26T17:25:50Z
dc.date.available2022-07-26T17:25:50Z
dc.date.issued2022-07-26
dc.description.abstractThis paper shows that, when utility is imperfectly transferable and the search process is competitive (or directed), wealthier buyers pay higher prices to speed up transactions. This result is established in a dynamic model of the housing market where households save both to smooth consumption and to build a down payment. "Block recursivity" is ensured by the existence of risk-neutral housing intermediaries. The calibrated version of our benchmark economy features greater indebtedness and higher housing prices in the long run compared to aWalrasian model, especially when the elasticity of new housing supply is low. We also show that the long-run effect of greater credit availability on housing prices depends crucially on whether or not rental and real estate housing stocks are segmented. Under full segmentation, price effects are much larger, with and without search frictions. But, even if there is no segmentation, these effects are substantial in our search model when supply elasticity is low, being larger than in the Walrasian version of the model. The last result is reversed with full segmentation, when search frictions dampen the price effect of the credit expansion.en
dc.description.sponsorshipSupport from the Spanish Ministerio Economía y Competitividad, grants ECO2016-76818-C3-1-P, ECO2017-86261-P, , MDM 2014-0431, and Comunidad de Madrid (Spain), grant EPUC3M11 (V PRICIT), are gratefully acknowledged.en
dc.identifier.issn2340-5031
dc.identifier.urihttps://hdl.handle.net/10016/35536
dc.identifier.uxxiDT/0000002020es
dc.language.isoenges
dc.relation.ispartofseriesWorking paper. Economicsen
dc.relation.ispartofseries22-14
dc.relation.projectIDGobierno de España. ECO2016-76818-C3-1-Pes
dc.relation.projectIDGobierno de España. ECO2017-86261-Pes
dc.relation.projectIDGobierno de España. PID2019-107161GB-C31es
dc.relation.projectIDComunidad de Madrid. MDM 2014-0431es
dc.rightsAtribución-NoComercial-SinDerivadas 3.0 España*
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/es/*
dc.subject.ecienciaEconomíaes
dc.subject.jelD31
dc.subject.jelD83
dc.subject.jelE21
dc.subject.jelR21
dc.subject.jelR30
dc.subject.otherCompetitive Searchen
dc.subject.otherWealth Effectsen
dc.subject.otherHousing Pricesen
dc.subject.otherCredit Constraintsen
dc.subject.otherHousing Supply Elasticityen
dc.subject.otherRental Marketen
dc.titleHousing prices and credit constraints in competitive searchen
dc.typeworking paper*
dspace.entity.typePublication
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