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 |
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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 |
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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