The Thick Market Effect on Housing Markets Transactions / Li Gan, Qinghua Zhang.

Format:

Book

Author/Creator:

Gan, Li.

Contributor:

National Bureau of Economic Research.

Zhang, Qinghua.

Series:

Working Paper Series (National Bureau of Economic Research) no. w12134.

NBER working paper series no. w12134

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2006.

Summary:

This paper provides a search model for housing market where the number of buyers and/or sellers plays very important role. The model makes three testable predictions: (1) the unemployment rate has a negative impact on the trading volume and the sale prices of the housing market; (2) a larger housing market has a lower average sale price, shorter time-to-sale and smaller price dispersion, in addition to a lower vacancy rate. (3) In a larger housing market, when the unemployment rate goes up (or down), the sale price decreases (or increases) by a smaller percentage than in a smaller market. All three predictions are supported by a panel dataset of the Texas city-level housing markets.

Notes:

Print version record

April 2006.