History Dependence in the Housing Market

• 成果类型: Article
• 署名作者: Bracke, Philippe; Tenreyro, Silvana
• 署名单位: University of London; London School Economics & Political Science
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MACROECONOMICS
• ISSN/ISSBN: 1945-7707
• DOI: 10.1257/mac.20180241
• 发表日期: 2021
• 页码: 420-443
• 关键词: Loss aversion; equity constraints

摘要

Using data on the universe of housing transactions in England and Wales over a 20-year period, we document that sale prices and selling propensities are affected by house prices prevailing in the period in which properties were previously bought. Using administrative data on mortgages, we show that cognitive frictions explain most of the history dependence in sale prices, whereas credit frictions are more relevant for selling propensities. We corroborate our analysis with data on online house listings, and we estimate the impact of history dependence on the collapse and slow recovery of housing market activity in the postcrisis period.