Competing Risks in a Time on the Market Analysis
AbstractTheoretical models on the selling process in the housing market are scarce. Taylor (1999) specifies a model where time-on-the-market gives a quality signal of the house to potential buyers if inspection outcomes of the house are not public. We specify a duration model with competing risks, where the competing risks are a sale or a withdrawal from the market. We use a unique administrative dataset from the Netherlands. We find negative duration dependence in the hazard of sale and positive duration dependence in the hazard of withdrawal confirming the empirical predictions from Taylor (1999).
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Bibliographic InfoPaper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 10-108/2.
Date of creation: 29 Oct 2010
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time-on-the-market; duration models; household finance; housing market;
Find related papers by JEL classification:
- G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
- C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
- D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
- R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
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- de Wit, Erik R. & van der Klaauw, Bas, 2013.
"Asymmetric information and list-price reductions in the housing market,"
Regional Science and Urban Economics,
Elsevier, vol. 43(3), pages 507-520.
- Erik R. de Wit & Bas van der Klaauw, 2010. "Asymmetric Information and List Price Reductions in the Housing Market," Tinbergen Institute Discussion Papers 10-038/3, Tinbergen Institute.
- de Wit, Erik & van der Klaauw, Bas, 2010. "Asymmetric Information and List Price Reductions in the Housing Market," CEPR Discussion Papers 7799, C.E.P.R. Discussion Papers.
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