Reference Dependence in the Housing Markets

• 成果类型: Article
• 署名作者: Andersen, Steffen; Badarinza, Cristian; Liu, Lu; Marx, Julie; Ramadorai, Tarun
• 署名单位: Copenhagen Business School; National University of Singapore; University of Pennsylvania; Imperial College London; Center for Economic & Policy Research (CEPR)
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20191766
• 发表日期: 2022
• 页码: 3398-3440
• 关键词: Loss aversion; prospect-theory; unemployment benefits; equity constraints; seller behavior; price; preferences; MODEL; expectations; DESIGN

摘要

We quantify reference dependence and loss aversion in the housing market using rich Danish administrative data. Our structural model includes loss aversion, reference dependence, financial constraints, and a sale decision, and matches key nonparametric moments, including a hockey stick in listing prices with nominal gains, and bunching at zero realized nominal gains. Households derive substan-tial utility from gains over the original house purchase price; losses affect households roughly 2.5 times more than gains. The model helps explain the positive correlation between aggregate house prices and turnover, but cannot explain visible attenuation in reference depen-dence when households are more financially constrained. (JEL D12, D91, G51, R21, R31)