Lisi, Gaetano (2012): Home seekers in the housing market.
Download (1MB) | Preview
This housing market matching model considers two types of home seekers: people who search for a house both in the rental and in the homeownership market, and people who only search in the homeownership market. The house-search process leads to several types of matching and in turn this implies different prices of equilibrium. Also, the house-search process connects the rental market with the homeownership market. This model is thus able to explain both the relationship between the rental price and the selling price and the price dispersion which exists in the housing market. Furthermore, this theoretical model can be used to study the impact of taxation in the two markets. Precisely, it is straightforward to show the effects of two different taxes: the tax on property sale and the tax on rental income.
|Item Type:||MPRA Paper|
|Original Title:||Home seekers in the housing market|
|Keywords:||rental market; homeownership market; housing prices|
|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 > 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:||13. May 2012 17:15|
|Last Modified:||20. Feb 2013 21:43|
Albrecht, James, Anderson Axel, Eric Smith, and Susan Vroman (2007), “Opportunistic Matching in the Housing Market”, International Economic Review, 48(2), 641‐664.
Albrecht, James, Gautier Pieter A., and Susan Vroman (2009), “Directed Search in the Housing Market”, IZA Discussion Papers, 4671.
Caplin, Andrew, and John Leahy (2008), “Trading Frictions and House Price Dynamics”, NBER Working Paper, w14605.
Díaz, Antonia, and Belén Jerez (2009), “House Prices, Sales and Time on the Market: A Search-Theoretic Framework”, Working Paper 09-25 Economic Series, Departamento de Economía, Universidad Carlos III de Madrid.
Genesove, David, and Lu Han (2010), “Search and Matching in the Housing Market”, CEPR Discussion Papers, n. 7777.
Kashiwagi, Masanori (2011), “Self-fulfilling Beliefs and Bounded Bubbles in the U.S. Housing Market”, EUI Working paper Max Weber Program, 2011/08.
Krainer, John (2001), “A Theory of Liquidity in Residential Real Estate Markets”, Journal of Urban Economics, 49(1), 32–53.
Leung, Charles Ka Yui, and Zhang, Jun (2011), “Fire Sales in Housing Market: Is the House–Search Process Similar to a Theme Park Visit ? ”, International Real Estate Review, 14(3), 311-329.
Leung, Charles, Youngman Leong, and Siu Wong (2006), “Housing Price Dispersion: An Empirical Investigation”, The Journal of Real Estate Finance and Economics, 32(3), 357-385.
Ngai, Rachael and Silvana Tenreyro (2009), “Hot and Cold Seasons in the Housing Market”, CEP Discussion Papers, dp0922.
Novy‐Marx, Robert (2009), “Hot and Cold Markets”, Real Estate Economics, 37(1), 1‐22.
Peterson, Brian M. (2012), “Fooled by Search: Housing Prices, Turnover and Bubbles”, Bank of Canada Working Paper 2012-3.
Piazzesi, Monika, and Martin Schneider (2009), “Momentum Traders in the Housing Market: Survey Evidence and a Search Model”, American Economic Review: Papers & Proceedings, 99(2), 406-411.
Pissarides, Christopher A. (2000), Equilibrium Unemployment Theory (2nd edition), MIT Press Books.
Poterba, James M. (1984), “Tax Subsidies to Owner-occupied Housing: An Asset Market Approach”, The Quarterly Journal of Economics, 99(4), 729-752.
Wheaton, William C. (1990), “Vacancy, Search, and Prices in a Housing Market Matching Model”, Journal of Political Economy, 98(6), 1270-1292.
Available Versions of this Item
Home seekers in the housing market. (deposited 03. Mar 2012 19:02)
- Home seekers in the housing market. (deposited 13. May 2012 17:15) [Currently Displayed]