Market thickness and the impact of unemployment on housing market outcomes

• 成果类型: Article
• 署名作者: Gan, Li; Wang, Pengfei; Zhang, Qinghua
• 署名单位: Texas A&M University System; Texas A&M University College Station; Hong Kong University of Science & Technology; Peking University
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2018.04.007
• 发表日期: 2018
• 页码: 27-49
• 关键词: Housing markets; unemployment; Thick-market effect; Search-and-matching

摘要

A search-and-matching model is developed to study how unemployment influences the housing market in the presence of the thick-market effect. A structural estimation of the model is conducted based on Texas city-level data that covers three years-1990, 2000 and 2010. Simulations help clarify how much the thick-market effect amplifies the impact of unemployment. A three-percentage-point increase in the unemployment rate lowers the price by 10.74% and reduces the transaction volume by 5.49%. Incorporating a feedback mechanism from housing prices to unemployment strengthens the amplification magnitude of the thick-market effect. (C) 2018 Elsevier B.V. All rights reserved.