Here lives a wealthy man : price rigidity and predictability in luxury housing markets

Daniel Levy (Department of Economics, Bar-Ilan University, Ramat-Gan, Israel), Avichai Snir (Netanya Academic College, Netanya, Israel)

We use novel and unique data to study the effect of price changes in the market for luxury and middle class homes. We find that luxury home sales respond less to price changes than the middle-class home sales; in the market for luxury homes, past prices affect current prices; luxury home prices persist; and prices of luxury homes are stickier than prices of middle-class homes. Recent macroeconomic models predict that housing markets can have counter-cyclical effect, if home prices are flexible. Our findings imply that home prices, especially luxury home prices, may not be flexible enough to generate such effect.

MoreLess

Year of publication:	[03/2018] ; Revised: February 20, 2018
Authors:	Levy, Daniel C. ; Snir, Avichai
Publisher:	[Ramat-Gan, Israel] : [Bar Ilan University, Department of Economics]
Subject:	Housing market \| luxury housing \| housing demand \| price rigidity \| sticky prices \| predictability \| Veblen effect \| Preisrigidität \| Price stickiness \| Wohnungsmarkt \| Immobilienpreis \| Real estate price \| Luxusgüter \| Luxury goods \| Immobilienmarkt \| Real estate market

freely available

Full text |

More access options

econ.biu.ac.il

Check Google Scholar

In German libraries (KVK)

I need help

Extent:	1 Online-Ressource (circa 76 Seiten) Illustrationen
Series:	Department working papers / Bar-Ilan University, Department of Economics. - Ramat-Gan : [Verlag nicht ermittelbar], ZDB-ID 2480956-1. - Vol. 2018, 01
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Graue Literatur ; Non-commercial literature ; Arbeitspapier ; Working Paper
Language:	English
Other identifiers:	hdl:10419/202533 [Handle]
Classification:	E31 - Price Level; Inflation; Deflation ; E32 - Business Fluctuations; Cycles ; R21 - Housing Demand ; G14 - Information and Market Efficiency; Event Studies ; D12 - Consumer Economics: Empirical Analysis
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10011806013