HOUSE PRICES, SALES, AND TIME ON THE MARKET: A SEARCH-THEORETIC FRAMEWORK

By Antonia Díaz, Belén Jerez. 2013

217 citations recorded by the source corpus.

We assess the ability of a standard search and matching framework to account for the cyclical properties of key macroeconomic time series of the housing market. We calibrate a model with aggregate demand and supply shocks to match selected business cycle properties of vacancies and sales in the United States. Our model reproduces the cyclical time series properties of house prices and the positive and negative comovement of prices with sales and time on the market, respectively. Search and matching frictions produce trading delays that augment the volatility of prices and propagate the effect of aggregate shocks to future periods.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/fce59a1c91b68a1edf60dd028b5921020c4e5f6c

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

1. Morris A. Davis
2. Huw Lloyd-Ellis
3. A. Head
4. F. Ortalo-Magné
5. James Albrecht
6. Robert J. Barro
7. Nobuhiro Kiyotaki
8. Tom Cunningham

In Finance

1. Morris A. Davis
2. Huw Lloyd-Ellis
3. A. Head
4. F. Ortalo-Magné
5. James Albrecht
6. Robert J. Barro
7. Nobuhiro Kiyotaki
8. Ian Martin

Citations in the corpus

• Hot and cold seasons in the housing market (2014, background): “To see this second term more clearly, observe from (3) and (4) that”
• Search, Liquidity and the Dynamics of House Prices and Construction (2014, background): “As we demonstrate below, condition (22) must hold in a steady–state equilibrium.”