Spillovers in Prices: The Curious Case of Haunted Houses

Utpal Bhattacharya, Daisy Huang*, Kasper Meisner Nielsen

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review


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.
Original languageEnglish
JournalReview of Finance
Issue number3
Pages (from-to)903-935
Number of pages33
Publication statusPublished - May 2021


  • Fire sales
  • Negative spillovers
  • Haunted houses

Cite this