Szumilo, N;
(2021)
Prices of peers: identifying endogenous price effects in the housing market.
The Economic Journal
, 131
(639)
pp. 3041-3070.
10.1093/ej/ueaa129.
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Abstract
The paper identifies neighbourhood price spillovers in the housing market. Although this concept 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 summarizes 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 its neighbour's price by up to 0.3%.
| Type: | Article |
|---|---|
| Title: | Prices of peers: identifying endogenous price effects in the housing market |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1093/ej/ueaa129 |
| Publisher version: | https://doi.org/10.1093/ej/ueaa129 |
| Language: | English |
| Additional information: | This version is the author accepted manuscript. For information on re-use, please refer to the publisher’s terms and conditions. |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices > UCL BEAMS UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment > The Bartlett Sch of Const and Proj Mgt |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10116202 |
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