Imperfect Information and Investor Inferences From Housing Price Dynamics

John Clapp (), Walter Dolde and Dogan Tirtiroglu

Real Estate Economics, 1995, vol. 23, issue 3, 239-269

Abstract: We examine characteristics of housing price dynamics that may be consistent with rational learning and not simply irrational feedback trading. We find significant patterns of temporal and spatial diffusion that are more amenable to explanations that allow for rational components. First, we execute our tests not simply on housing price changes, but on town‐by‐town differentials from regional average price changes. Second, we find significant relationships with own and neighboring town differentials, but not with control groups of non‐neighboring towns. Third, we find that population density, a proxy for scale economies in information production, accelerates the diffusion process. Test were performed on quarterly data for large samples from Connecticut and the San Francisco area, employing method of moments estimators.

Date: 1995
References: View complete reference list from CitEc
Citations: View citations in EconPapers (50)

Downloads: (external link)
https://doi.org/10.1111/1540-6229.00665

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:reesec:v:23:y:1995:i:3:p:239-269

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1080-8620

Access Statistics for this article

Real Estate Economics is currently edited by Crocker Liu, N. Edward Coulson and Walter Torous

More articles in Real Estate Economics from American Real Estate and Urban Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().