COVID-19, state of emergency, and housing market

Delgado Narro, Augusto Ricardo and Katafuchi, Yuya (2020): COVID-19, state of emergency, and housing market.

Abstract

This study analyzes how the declaration of a state of emergency stemming from COVID-19 affected long-term consumer behavior, i.e., real estate purchasing activity. For our analysis, we define the earliest event that a state of emergency was declared as a treatment and monthly macro data on the real estate market at the county level as an outcome, and construct a panel dataset with various covariates. Using the dataset, we estimated the treatment effect using a difference-in-differences model and found the following; first, the emergency declarations issued by a government do not appear to have affected long-term consumption behavior. Second, this lack of effect remains after excluding various control variables or using a continuous treatment variable.

• Item Type: MPRA Paper
• Language: English
• Keywords: COVID-19, State of emergency, Housing market
• Subjects: I - Health, Education, and Welfare > I1 - Health > I15 - Health and Economic Development; I - Health, Education, and Welfare > I1 - Health > I18 - Government Policy ; Regulation ; Public Health; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R3 - Real Estate Markets, Spatial Production Analysis, and Firm Location > R31 - Housing Supply and Markets

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