Abstract
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 19% for units that become haunted, 9% for units on the same floor, 6% 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 an idiosyncratic quality shock. Second, we find that the demand shock rather than the fire sale supply shock explains most of the spillover.
| Original language | English |
|---|---|
| Publication date | 2019 |
| Number of pages | 54 |
| Publication status | Published - 2019 |
| Event | 2019 Financial Management Association Asia/Pacific Conference - Ho Chi Minh City, Viet Nam Duration: 10 Jul 2019 → 12 Jul 2019 https://www.fmaconferences.org/Vietnam/VietnamProgram.htm |
Conference
| Conference | 2019 Financial Management Association Asia/Pacific Conference |
|---|---|
| Country/Territory | Viet Nam |
| City | Ho Chi Minh City |
| Period | 10/07/2019 → 12/07/2019 |
| Internet address |
Keywords
- Fire sales
- Negative spillovers
- Haunted houses