We model listing decisions in the housing market, and structurally estimate household preference and constraint parameters using comprehensive Danish data. Sellers optimize expected utility from property sales, subject to down-payment constraints, and internalize the effect of their choices on final sale prices and time-on-the-market. The data exhibit variation in the listing price-gains relationship with "demand concavity"; bunching in the sales distribution; and a rising listing propensity with gains. A new fact is that gains and down-payment constraints have interactive effects on listing prices. We find reference-dependence around the nominal purchase price and modest loss-aversion, but our canonical model cannot fully explain the new facts.
|Status||Udgivet - 2020|
|Begivenhed||The 47th European Finance Association Annual Meeting. EFA 2020 - Virtual from The Aalto University School of Business, Helsinki, Finland|
Varighed: 20 aug. 2020 → 21 aug. 2020
Konferencens nummer: 47
|Konference||The 47th European Finance Association Annual Meeting. EFA 2020|
|Lokation||Virtual from The Aalto University School of Business|
|Periode||20/08/2020 → 21/08/2020|