Spillovers in Prices: The Curious Case of Haunted Houses

Utpal Bhattacharya, Daisy Huang*, Kasper Meisner Nielsen

*Corresponding author af dette arbejde

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Abstrakt

Exploiting the unique institutional setting of Hong Kong’s real estate market, we uncover a curious ripple effect of haunted houses on the prices of nearby houses. Prices drop on average 20% for units that become haunted, 10% for units on the same floor, 7% for units in the same block, and 1% for units in the same estate. Our study makes two contributions. First, we provide an estimate of a large negative spillover on prices caused by a quality shock. Second, we find that the demand shock rather than the fire sale supply shock explains most of the spillover.
OriginalsprogEngelsk
TidsskriftReview of Finance
Vol/bind25
Udgave nummer3
Sider (fra-til)903-935
Antal sider33
ISSN1572-3097
DOI
StatusUdgivet - maj 2021

Emneord

  • Fire sales
  • Negative spillovers
  • Haunted houses

Citationsformater