Munich Personal RePEc Archive

Can the Mortensen-Pissarides model match the housing market facts?

Lisi, Gaetano (2012): Can the Mortensen-Pissarides model match the housing market facts?

WarningThere is a more recent version of this item available.
[img]
Preview
PDF
MPRA_paper_43524.pdf

Download (1MB) | Preview

Abstract

In the housing markets, three basic facts have been repeatedly reported by empirical studies: the existence of price dispersion, the positive correlation between housing price and time-on-the-market, and between housing price and trading volume. Since housing markets are also characterised by a decentralised framework of exchange with important search and matching frictions, this paper examines whether the baseline search and matching model, i.e. the Mortensen-Pissarides model, can account for these three basic facts. We find that the behaviour of the housing market reflected in the above empirical findings can be addressed adequately by the standard matching framework.

Available Versions of this Item

Logo of the University Library LMU Munich
MPRA is a RePEc service hosted by
the University Library LMU Munich in Germany.