Does an Oligopolistic Primary Market Matter? The Case of an Asian Housing Market

Tang, Edward Chi Ho and Leung, Charles Ka Yui and Ng, Joe Cho Yiu (2018): Does an Oligopolistic Primary Market Matter? The Case of an Asian Housing Market.

Abstract

This paper takes advantage of the oligopolistic structure of the Hong Kong primary housing market and examines whether the time-variations of the market concentration are caused by or cause the variations of the local economic factors. The analysis also takes into consideration of the changes of the U.S. variables and commodity prices, which arguably may represent changes in the construction cost. We find clear evidence of time-varying responses of housing market variables to macroeconomic variables. Policy implications and directions for future research are also discussed.

• Item Type: MPRA Paper
• Language: English
• Keywords: Oligopoly, market share, Herfindahl index, macroeconomic variables, dynamic factor model, Time-Varying Bayesian Factor Augmented VAR
• Subjects: E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E30 - General; L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L12 - Monopoly ; Monopolization Strategies; L - Industrial Organization > L8 - Industry Studies: Services > L85 - Real Estate Services; 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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