The decision to move house and aggregate housing-market dynamics

L. Rachel Ngai and Kevin Sheedy

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Using data on house sales and inventories, this paper shows that housing transactions are driven mainly by listings and less so by transaction speed, thus the decision to move house is key to understanding the housing market. The paper builds a model where moving house is essentially an investment in match quality, implying that moving depends on macroeconomic developments and housing-market conditions. The number of transactions has implications for welfare because each transaction reduces mismatch for homeowners. The quantitative importance of the decision to move house is shown in understanding the U.S. housing-market boom during 1995–2003.

Keywords: housing market; search and matching; endogenous moving; match quality investment; mismatch (search for similar items in EconPapers)
JEL-codes: D83 E22 R31 (search for similar items in EconPapers)
Pages: 45 pages
Date: 2020-10-01
New Economics Papers: this item is included in nep-ban, nep-dge, nep-mac and nep-ure
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Citations: View citations in EconPapers (9)

Published in Journal of the European Economic Association, 1, October, 2020, 18(5), pp. 2487 - 2531. ISSN: 1542-4766

Downloads: (external link)
http://eprints.lse.ac.uk/100890/ Open access version. (application/pdf)

Related works:
Journal Article: The Decision to Move House and Aggregate Housing-Market Dynamics (2020)
Working Paper: The Decision to Move House and Aggregate Housing-Market Dynamics (2016)
Working Paper: The decision to move house and aggregate housing-market dynamics (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:100890

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