Download or read book Essays on the Determinants of Housing Prices written by Anupam Nanda and published by . This book was released on 2006 with total page 212 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Housing Prices written by Yifan Chen and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation examines the dynamics between housing prices, firms, and households. The first chapter focuses on sequential information revelation in the housing markets; the second chapter investigates the impact of house price appreciation on the returns of value versus growth firms; the third chapter estimates the effect of gun control on home values. In Chapter 1, I use Amazon's progressive revelation of its new headquarters locations in Virginia and New York to demonstrate that the housing market fully incorporates information about future demand well before disclosure. Spatial difference-in-differences analysis shows that housing prices near the Virginia headquarters exhibit 4.9% premia before Amazon's headquarters decision but no additional increase upon decision. Price premia for New York reach 17.5% before the decision but disappear once Amazon cancels the headquarters. Other finalist cities exhibit no price premia, precluding the possibility of speculation. Overall, this study suggests that the housing market can quickly incorporate private information about future demand shocks. In Chapter 2, I investigate the value-growth premium puzzle by merging insights from urban economics and finance that relate firm location to its stock performance. The value-growth premium in locations with high historical house price appreciation is 3.6% per year larger than the premium in areas that experienced little house price appreciation. The results support investment-based models explaining the value premium; moreover I find the house price channel reduces returns of growth firms rather than increasing returns of value firms. House price appreciation remains significant after controlling for common explanations of the premium. In Chapter 3, using cross-border variation in the timing of state gun control law passage dates, I find that the introduction of universal background checks for gun sales results in a roughly 2.3 percent decline in housing prices on average. I find a more significant decrease in housing prices, i.e., up to 5.3 percent, if the state is neighboring a Republican rather than a Democratic state. This result is robust to several specification tests and does not appear to be associated with neighborhood crime rate changes.

Download or read book Essays in Housing Markets written by Nadezda Andreevna Kotova and published by . This book was released on 2021 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation studies inefficiencies and riskiness in the US housing market. In Chapter I, coauthored with Anthony Lee Zhang, we study liquidity in residential real estate markets and show that market illiquidity is a key determinant of individual house price risk. In Chapter II, coauthored with Zi Yang Kang, we study how the quality of houses traded in a market evolves in the presence of predictable cyclical changes in market conditions. Chapter III studies how industrial concentration creates risk concentration through amplified pass-through of industry-specific productivity shocks into local house prices, wages, and employment.

Download or read book Essays on the Determinants and Spillovers of South African Housing Market written by Beatrice Desiree Simo-Kengne and published by . This book was released on 2013 with total page 270 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Income Distribution and Housing Prices written by Yang Tang and published by . This book was released on 2013 with total page 174 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis focuses on some prominent features in both U.S and Chinese economy. For instance, average housing price per square meter in China has been almost tripled from 1998 to 2010. What drives housing price growth? How much housing price growth can be explained by some fundamental factors? Those questions are interesting since it allows us to explore whether there is a bubble component in the housing price. If bubble exists, then how large it is? Another clear observation is that income inequality has risen sharply in U.S over the past several decades. What are those factors that might contribute to this trend? How financial friction may affect income distribution and people's education choice? Those are important issues that deserve further study.

Download or read book Four Essays on Housing Market Dynamics written by Yasuhiro Nakagami and published by . This book was released on 1989 with total page 318 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Investment and House Prices written by Thang Long Tran and published by . This book was released on 2014 with total page 346 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis combines four related essays that examine investment activities and housing dynamics in Australia. The first essay investigates the key drivers of Australian aggregate business investment. Tobin's q, income, cash flow and uncertainty impacts on investment are determined and disentangled. Uncertainty and demand constraints are revealed to be highly significant for investment over business cycle frequencies. The second essay examines the firm-level investment determinants of listed non-financial companies in the Australian stock market. Although both having negative effects on firm investment, firm specific uncertainty is more important in explaining firm investment than macroeconomic uncertainty. The third essay analyses the price dynamics of the Australian housing market during the last three decades using a housing behavioral economic model based on nominal variables and the behavior of house buyers. The empirical evidence shows that the proposed model is equivalent or even better than other conventional models in explaining house price dynamics. In the last essay, private housing investment in Australia since the 1980s is investigated using Tobin's q and stock-flow models. A long-term co-integration relationship between Tobin's q and the investment ratio, as posited by q theory is not found, while changes in q have an impact on investment in the short-term. The determinants extracted from the stock-flow model explain the movement of housing investment. Uncertainty and construction costs are revealed not to be highly significant for investment. There is evidence of a positive correlation between investment and business cycles.

Download or read book Essays on the Economics of Housing written by Paramita Dhar and published by . This book was released on 2011 with total page 278 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Three Essays on Housing and Labor Economics written by XUE HU and published by . This book was released on 2017 with total page 178 pages. Available in PDF, EPUB and Kindle. Book excerpt: These essays contribute towards our understanding of housing and labor economics. This dissertation is composed of three chapters. In the first chapter, I explore the impact of negative housing equity on households' geo- graphical mobility using data from Panel Study of Income Dynamics. The empirical analysis implies that addressing the endogeneity nature of homeowners' underwater mortgage status is crucial. Even with comprehensive controls for households' demographic characteristics and macro-level factors, omitted variable bias such as homeowners' attitudes towards their financial responsibility may still generate estimation bias that is quite large. After proper instrumenting for homeowners' underwater mortgage status using local shocks from housing and labor markets, the estimation results show that having underwater mortgages is associated with an average decline in mobility rate of about 17 percentage points. The second chapter investigates the role of housing choice and mortgage on employment transitions when there are uncertainties regarding income and house prices. Motivated by the empirical evidence on large employment-transition disparities between homeowners and renters, I develop and estimate a structural model in which mortgage obligations motivate homeowners to exert greater job-search efforts during unemployment spells. The model is used to understand individuals' response to housing and labor market shocks. I find that while the decline in house prices creates negative labor market externalities for renters, tightening mortgage constraints result in greater job search incentives for homeowners. With concurrent negative labor market shocks, the probability of transitioning out of unemployment for both renters and homeowners declines. Two policy experiments are conducted. The first shows that lower refinance cost discourages housing equity accumulation and is associated with a decline in the average employment rate. The second demonstrates that a lower down payment requirement encourages the transition into home ownership, which has positive labor market implications, especially for younger individuals. The first two chapters explore the relation between underwater mortgage and geographical mobility and impacts of mortgage debt obligation on employment incentives. Both analyses are based on individual-level data. The last chapter investigates the mysteries of regional housing market disparities from a macro perspective. This chapter shows that local economic conditions are correlated with deviations between house prices and rents in a price-rent model framework, suggesting that the demand for credit and housing is greater when a variety of local economic conditions are more supportive. Several different measures of local economic conditions are considered in this chapter: local unemployment rates, local unemployment rates relative to the natural rate of unemployment, local inflation rates, and measures of local perceptions of the cost of credit. This chapter attempts to offer explanations not as how or why house prices increased, but rather, given the myriad of national factors making home purchase easier and cheaper, where house prices increased. This approach also resolves a bit of a puzzle as to why the housing bubble was so pronounced in some areas and not others.

Download or read book Essays in Entry and Exit Social Inefficiency and Commission Rates in Housing Market written by Seyed Parviz Gheblealivand and published by . This book was released on 2010 with total page 198 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the first paper, using a dataset of the records of Texas Real Estate Agents, I reexamine the findings of Hsieh and Moretti (2003) regarding the inefficiency of free entry in real estate industry: first, I point out one important source of misidentification in that paper's analysis of the relationship between home prices and the number of real estate agents in a city. This misidentification stems from not including the ratio of houses sold in a city to its labor force size as an explanatory variable. Failure to account for this variable will result in inflated coefficient for the effect of home prices on the percentage of real estate agents in a city's labor force. Second, I analyze the effect of home prices on productivity of real estate agents. Empirical evidence supports theory prediction of inverse relationship between home prices and productivity of its real estate agents (measured as the number of houses sold per agent) and the empirical results in Hsieh and Moretti (2003). Third, I investigate the relationship between the extra wages of real estate agents (defined as average earning net of agents' outside option) and home prices in a city. In support for free entry, I find no evidence of any such relationship. In theory, free entry potentially leads to social inefficiency. This paper finds strong empirical evidence consistent with excess entry into Texas Residential Real Estate Brokerage Industry and studies the effects of heterogeneity and future uncertainty on such inefficiencies. I develop a dynamic model of entry and exit with heterogeneous agents and modify the predictions of the earlier literature. I show that the heterogeneity among (real estate) agents results in a weaker relationship between the real estate commission fees and the number of real estate agents. I also show that the models developed for static cases in the previous papers are special cases of the more general model in this paper. The model allows us to explain the lower business stealing effect compared to static and homogeneous models that is observed in the data. To address the issue of excess entry, I separate the business stealing effect from demand driven entry and find that on average 75 percent of entry is due to business stealing. To evaluate free entry, I control for agents' outside options and find that the extra wages of the real estate agents do not vary with housing prices. The objective of the third paper is to study the determinants of commission rates in the two-sided market of real estate brokerage industry and explain the emergence of the MLS and its impact on commission rates. In addition to their commission rates, real estate agencies decide on their MLS policies as well: they can either list the property with the MLS and share information about it, or not list the property with the MLS. If a property is listed with the MLS, all MLS subscribers can see the listing and send their potential buyers to see that property. Potential buyers can go to any agency to purchase such a property. If the property is \textit{not} listed with the MLS, to buy a house, a buyer must go to the same agency that the seller has signed up with. Since sellers pay the commission fees, and buyers no longer have to go to the same agency, with MLS listing, buyers choose the closest agency regardless of the commission rates charged by the agencies. Therefore, changes in the commission rates only change the affiliation of the sellers and not that of the buyers. This leads to a softer competition under MLS listing as agencies compete only in the seller side of the market. The softer competition and resulting higher commission rates are desirable to the agencies. They prefer the MLS listing outcome and given the optimal strategies after observing each other's listing decisions, agencies weakly prefer listing to no listing. I show that the one period game has two Nash Equilibria in which either both real estate agencies choose to list their houses with the MLS, or both decide not to list their houses with the MLS. The no listing equilibrium forces buyers to work through that agency's agents and effectively ties the both sides of the market. The higher commission rate equilibrium of the game allows buyers to choose either agency and reduces the competition to the sellers side. Softer competition in turn, results in higher equilibrium commission rates and higher profits along the equilibrium path.

Download or read book Three Essays on Sellers Behavior in the Housing Market written by Svetoslava N. Alexandrova and published by . This book was released on 2017 with total page 192 pages. Available in PDF, EPUB and Kindle. Book excerpt: Housing markets exhibit some puzzling behavior that cannot be completely explained by rational market dynamics. The neoclassical economic theory posits that rational sellers and rational buyers in the housing market will look at the current market price in order to determine a value of a property. Studies, however, show that physiological biases may affect the decision- making process of both sellers and buyers.I examine the behavior of sellers in the housing market in three different settings. In Essay 1, I analyze the effects of the health of the housing market on mobility. In Essay 2, I study the effects of sellers' loss aversion on listing price and time on the market within the prospect theory framework. In Essay 3, I focus on identifying stress in the housing market by developing a stress index and commencing the design of an Early Warning System that incorporates signals from the market and behaviors from sellers to indicate increasing levels of pressure. I utilize a data set of private home sale transactions of corporate relocations for the period 2004-2014. The results of the first study from the stepwise logit models on series of economic variables and demographic factors show that relocating employees facing negative equity situations and equity less than 5% of home value have a greater chance of rejecting relocation while economic factors like affordability and credit availability have a positive effect on their ability to move. Essay 2 results indicate that a seller who faces a loss will set up an asking price 5.69 percent higher than they would otherwise. Additionally, sellers facing a loss will experience a reduction in the hazard rate of sale resulting in longer time on the market while income and family status have effect on loss aversion and time on market. In the last essay, I hypothesize that economic signals and home sellers' behaviors can explain the variability of the housing market stress index proxied by a transformed S&P 500/Case Shiller Index. The preliminary results of the autoregressive models find that housing variables and market expectations of the 'informed sellers' have statistically significant explanatory power.

Download or read book Three Essays on House Prices written by Jing Zhang and published by . This book was released on 2014 with total page 133 pages. Available in PDF, EPUB and Kindle. Book excerpt: The first essay questions the common treatment in the housing literature that the logarithm of real house price has a unit root. Those papers study the cointegration relationship of real house price and economic fundamental variables such as real income, and apply the error correction specification for modeling and forecasting real house prices. My study argues that the logarithm of real house price is not a unit root process. Instead, the evidence from a 120-year national dataset and metro area level and state level panel data sets point towards trend stationarity with structural breaks. I also find that the apparent reason that the most cited papers in the literature do not reject a unit root is that they do not include the most recent house price data. One result of this conclusion is that the validity of analyses of house prices based on cointegration and error correction models is questioned.

Download or read book Essays in Honor of Subal Kumbhakar written by Christopher F. Parmeter and published by Emerald Group Publishing. This book was released on 2024-04-05 with total page 487 pages. Available in PDF, EPUB and Kindle. Book excerpt: It is the editor’s distinct privilege to gather this collection of papers that honors Subhal Kumbhakar’s many accomplishments, drawing further attention to the various areas of scholarship that he has touched.

Download or read book An Essay on Urban Economic Theory written by Yorgos Y. Papageorgiou and published by Springer Science & Business Media. This book was released on 2012-12-06 with total page 327 pages. Available in PDF, EPUB and Kindle. Book excerpt: Over the past thirty years, urban economic theory has been one of the most active areas of urban and regional economic research. Just as static general equilibrium theory is at the core of modern microeconomics, so is the topic of this book - the static allocation of resources within a city and between cities - at the core of urban economic theory. An Essay on Urban Economic Theory well reflects the state of the field. Part I provides an elegant, coherent, and rigorous presentation of several variants of the monocentric (city) model - as the centerpiece of urban economic theory - treating equilibrium, optimum, and comparative statistics. Part II explores less familiar and even some uncharted territory. The monocentric model looks at a single city in isolation, taking as given a central business district surrounded by residences. Part II, in contrast, makes the intra-urban location of residential and non-residential activity the outcome of the fundamental tradeoff between the propensity to interact and the aversion to crowding; the resulting pattern of agglomeration may be polycentric. Part II also develops models of an urbanized economy with trade between specialized cities and examines how the market-determined size distribution of cities differs from the optimum. This book launches a new series, Advances in Urban and Regional Economics. The series aims to provide an outlet for longer scholarly works dealing with topics in urban and regional economics.

Download or read book House Prices and Household Behavior written by Kevin Russell Krivacsy and published by . This book was released on 2018 with total page 155 pages. Available in PDF, EPUB and Kindle. Book excerpt: Residential property values have only recently recovered from the effects of the Great Recession and the housing bubble and burst. During this period, cities were not collecting as much tax revenue as predicted because of depressed housing prices and the global economy suffered greatly because of it.Economists and others have studied the causes of the instability in property values in recent years from many angles. Their research has been influential in explaining what happened to the housing market during that time. Yet, what is missing is a detailed level analysis of how the spatial structure of our cities may contribute to this instability or stability in residential property values and a better understanding of their local dynamics.While economists are likely correct in their macroeconomic focus, there is still room for research on the role that local factors may have played or will play in the determination of residential property values. Even within metropolitan areas, there may have been a difference in magnitude of property value fluctuation.Therefore, this study focuses on the extent to which the urban form may contribute to overall economic stability as seen through the stability of residential property values. This research builds on past research by 1) incorporating more detailed and accurate neighborhood measures, 2) contributing to the literature by conducting cointegration at a very local level and 3) assessing the impact that neighborhood, demographic and economic attributes at the local level may have on the long-term stability of property values in our urban areas.

Download or read book Fundamental Drivers of House Prices in Advanced Economies written by Ms.Nan Geng and published by International Monetary Fund. This book was released on 2018-07-18 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: House prices in many advanced economies have risen substantially in recent decades. But experience indicates that housing prices can diverge from their long-run equilibrium or sustainable levels, potentially followed by adjustments that impact macroeconomic and financial stability. Therefore there is a need to monitor house prices and assess whether they are sustainable. This paper focuses on fundamentals expected to drive long run trends in house prices, including institutional and structural factors. The scale of potential valuation gaps is gauged on the basis of a cross-country panel analysis of house prices in 20 OECD countries.

Download or read book Prices Rents and Homeownership written by Philippe Bracke and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis includes three self-contained chapters whose common theme is the analysis of house price and rent movements, and how these movements influence the economic actions of individuals. In Chapter 1, I analyse a micro dataset on housing sales and rentals in Central London. I show that the ratio between prices and rents differ across property types: bigger and better located properties have higher price-rent ratios. These differences in price-rent ratios can be explained through a hedging model where households avoid rent risk by increasing their demand for homeownership. Consistently with this hypothesis, I find that rental prices for bigger properties and properties in more expensive neighbourhoods are not growing significantly faster than for other properties, but are more volatile. In Chapter 2, together with my two co-authors Christian Hilber and Olmo Silva, I study the relationship between homeownership and entrepreneurship by exploiting the longitudinal dimension of the British Household Panel Survey (BHPS) and constructing a detailed monthly-spell dataset that tracks individuals' job histories and tenure choices, coupled with other time-varying characteristics. Our fixed-effect estimates show that purchasing a house reduces the likelihood of starting a business by 20-25%. This result is driven by homeowners with mortgages and persists for several years after entering homeownership. The negative relationship can be rationalised by portfolio considerations: leveraged housing investments crowd out entrepreneurial investments. Alternative explanations based on credit constraints find little support in our data. In Chapter 3, I analyse the duration of house price upturns and downturns in the last 40 years for 19 OECD countries and provide two results. First, upturns display duration dependence: they are more likely to end as their duration increases. Second, downturns display lagged duration dependence: they are less likely to end if the previous upturn was particularly long. Both these facts are consistent with a boom-bust view of housing price dynamics, where booms represent departures from fundamentals that are increasingly difficult to sustain, and busts serve as readjustment periods.