Housing markets with endogenous search

Theory and implications

Bibliographic Data

ID11080530
AuthorsJoseph Williams (0000-0002-7152-5010, Anthem (United States), corresponding author)
Year2018
Volume105
Pages107-120
Publication date2018-05-01
Open AccessYes
TypeARTICLE
VenueJournal of Urban Economics (JOURNAL)
Journal identifiersISSN: 0094-1190 • E-ISSN: 1095-9068
PublisherElsevier BV (PUBLISHER)
DOI10.1016/j.jue.2017.12.001
OpenAlexW2775752050
LanguageEN
Citations received1
References cited29

In this model buyers and sellers enter a housing market with imperfect elasticity. Buyers screen houses for sale in two segments of the market select a set of houses for search in each segment, and then control their intensities of costly search among houses in their preferred sets. Their truncated distributions of acceptable match values are assumed to be power law. Partial equilibrium is calculated explicitly and steady state is characterized analytically. The analysis is extended to multiple segments and markets. Empirical implications include higher average prices and price–rent ratios in preferred segments and markets, as well as spatial diffusion across segments and markets of average prices, price–rent ratios, and search. The predictions are consistent with existing empirical evidence

Econometrics · Economics · Empirical evidence · Imperfect · Market power · Market segmentation · Microeconomics · Price elasticity of demand · Search theory · Set (abstract data type · Computer Science · Economic and Environmental Valuation · Housing Market and Economics · Urban Planning and Valuation

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