Spillovers in Prices: The Curious Case of Haunted Houses

Utpal Bhattacharya, Kasper Meisner Nielsen, Daisy Huang

Research output: Contribution to conferencePaperResearchpeer-review

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 languageEnglish
Publication date2019
Number of pages54
Publication statusPublished - 2019
Event2019 Financial Management Association Asia/Pacific Conference - Ho Chi Minh City, Viet Nam
Duration: 10 Jul 201912 Jul 2019
https://www.fmaconferences.org/Vietnam/VietnamProgram.htm

Conference

Conference2019 Financial Management Association Asia/Pacific Conference
CountryViet Nam
CityHo Chi Minh City
Period10/07/201912/07/2019
Internet address

Keywords

  • Fire sales
  • Negative spillovers
  • Haunted houses

Cite this

Bhattacharya, U., Meisner Nielsen, K., & Huang, D. (2019). Spillovers in Prices: The Curious Case of Haunted Houses. Paper presented at 2019 Financial Management Association Asia/Pacific Conference, Ho Chi Minh City, Viet Nam. http://www.fmaconferences.org/Vietnam/Papers/Haunted_Houses_Bhattacharya.pdf