House Price Momentum and Strategic Complementarity.
House prices exhibit substantially more momentum, positive autocorrelation in price changes, than existing theories can explain. I introduce an amplification mechanism to reconcile this discrepancy. Sellers do not set a unilaterally high or low list price because they face a concave demand curve: in...
| Publicado en: | Journal of Political Economy Vol. 126; no. 3; pp. 1172 - 1219 |
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| Formato: | Artículo |
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University of Chicago Press
Jun2018
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=129774986&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 129774986 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00223808 JPE jtl: Journal of Political Economy issn: 00223808 maglogo: N pubinfo: dt: Jun2018 vid: 126 iid: 3 pid: 415 pub: University of Chicago Press artinfo: ui: 129774986 10.1086/697207 ppf: 1172 ppct: 47 formats: tig: atl: House Price Momentum and Strategic Complementarity. aug: au: Guren, Adam M. affil: Boston University su: Prices Housing market Home prices Demand function Home sales sug: subj: Prices Housing market Home prices Demand function Home sales ab: House prices exhibit substantially more momentum, positive autocorrelation in price changes, than existing theories can explain. I introduce an amplification mechanism to reconcile this discrepancy. Sellers do not set a unilaterally high or low list price because they face a concave demand curve: increasing the price of an above-average-priced house rapidly reduces its sale probability, but cutting the price of a below-average-priced house only slightly improves its sale probability. The resulting strategic complementarity amplifies frictions because sellers gradually adjust their price to stay near average. I provide empirical evidence for concave demand using a quantitative search model that amplifies momentum two- to threefold. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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