The Role of Proximity in Foreclosure Externalities: Evidence from Condominiums

• 成果类型: Article
• 署名作者: Fisher, Lynn M.; Lambie-Hanson, Lauren; Willen, Paul
• 署名单位: University of North Carolina; University of North Carolina Chapel Hill; Federal Reserve System - USA; Federal Reserve Bank - Philadelphia; Federal Reserve System - USA; Federal Reserve Bank - Boston
• 刊物名称: American Economic Journal-Economic Policy
• ISSN/ISSBN: 1945-7731
• DOI: 10.1257/pol.20130102
• 发表日期: 2015
• 页码: 119-140
• 关键词: mortgage foreclosures; equity; MARKET; TENURE

摘要

We measure the effect of foreclosures on the sale prices of nearby properties using a dataset of condominiums in Boston. A foreclosure in the same association and at the same address depresses the sale price by 2.5 percent, but properties in the same association but located at a different address have an effect that is tightly estimated at zero. Since properties in the same association are close substitutes, we argue that the evidence points against the pecuniary externality of property coming on the market and toward a physical externality as the source of measured foreclosure externalities.