Lisi, Gaetano (2012): Can the Mortensen-Pissarides model match the housing market facts?
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This paper examines whether the baseline Mortensen-Pissarides matching model can account for the housing market facts, namely, the existence of price dispersion, the positive correlation between housing price and trading volume, and between housing price and time-on-the-market. Our main finding is that the model can account for these three basic facts of the housing market, thus showing that the Mortensen-Pissarides framework can be seen as the benchmark macroeconomic model not only for the labour market but for any market with frictions.
|Item Type:||MPRA Paper|
|Original Title:||Can the Mortensen-Pissarides model match the housing market facts?|
|Keywords:||housing price dispersion, time-on-the-market, trading volume, search and matching process|
|Subjects:||J - Labor and Demographic Economics > J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers > J63 - Turnover ; Vacancies ; Layoffs
R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R3 - Real Estate Markets, Spatial Production Analysis, and Firm Location > R31 - Housing Supply and Markets
R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R2 - Household Analysis > R21 - Housing Demand
|Depositing User:||Gaetano Lisi|
|Date Deposited:||02 Mar 2012 20:42|
|Last Modified:||26 Jan 2016 02:07|
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Can the Mortensen-Pissarides model match the housing market facts? (deposited 20 Feb 2012 01:33)
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