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High and Low Activity Spell in Housing Markets

Smith, E (2015) High and Low Activity Spell in Housing Markets. UNSPECIFIED. University of Essex, Department of Economics, Economics Discussion Papers.

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Abstract

This paper demonstrates the way in which stock-flow matching with endogenous seller entry generates hot and cold spells in house sales. Potential sellers know the number of bidders remaining from the last house sale. If two or more bidders remain, the seller obtains the gains to trade through competitive bidding. The market is active. With one monopolistic bidder, the buyer captures the surplus and sellers become unwilling to enter. The market remains dormant until sellers think enough time has passed for buyer entry to have replenished the market and make entry profitable. The resulting pattern of trade matches up with observations from Wisconsin.

Item Type: Monograph (UNSPECIFIED)
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Social Sciences > Economics, Department of
Depositing User: Jim Jamieson
Date Deposited: 08 Dec 2015 16:09
Last Modified: 17 Aug 2017 17:29
URI: http://repository.essex.ac.uk/id/eprint/15620

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