PRICES OF PEERS: IDENTIFYING ENDOGENOUS PRICE EFFECTS IN THE HOUSING MARKET

• 成果类型: Article
• 署名作者: Szumilo, Nikodem
• 署名单位: University of London; University College London
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.1093/ej/ueaa129
• 发表日期: 2021
• 页码: 3041-3070
• 关键词: rational-expectations; Spatial Dependence; stock-prices; real-estate; MODEL; INFORMATION; identification; uncertainty; comovement; EFFICIENCY

摘要

The paper identifies neighbourhood price spillovers in the housing market. Although this concept has attracted some theoretical research and is strongly supported by practitioners, it has proven very difficult to show in empirical data. By using the linear-in-means model, which is routinely applied to identify endogenous effects in groups of peers, the study summarises all threats to identification and demonstrates how they can be addressed by exploiting information asymmetry between buyers of different houses and delays in revealing transaction prices. The results show that a 1% increase in the price of a house increases the house price of its neighbour by up to 0.3%.