Lisi, Gaetano (2011): The Hedonic Price Function in a Matching Model of Housing Market.
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This paper develops a theoretical model in which the matching framework à la Pissarides (2000) extended to the housing market is integrated with the hedonic price theory. Market tightness and selling price collectively determine the long-run equilibrium of the economic system in which a seller can become a buyer, and vice versa. As a result, the house price depends not only on the housing characteristics but also on the market tensions and bargaining power of the parties. This integration allows to overcome a major drawback of the hedonic price theory, namely the assumption of perfect competition.
|Item Type:||MPRA Paper|
|Original Title:||The Hedonic Price Function in a Matching Model of Housing Market|
|Keywords:||hedonic price theory; housing market; matching models|
|Subjects:||J - Labor and Demographic Economics > J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers > J64 - Unemployment: Models, Duration, Incidence, and Job Search
R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R2 - Household Analysis > R21 - Housing Demand
R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R3 - Real Estate Markets, Spatial Production Analysis, and Firm Location > R31 - Housing Supply and Markets
|Depositing User:||Gaetano Lisi|
|Date Deposited:||09. Aug 2011 09:15|
|Last Modified:||13. Feb 2013 13:52|
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