Abstract

http://ssrn.com/abstract=1293642
 
 

References (63)



 
 

Citations (26)



 


 



Why Has House Price Dispersion Gone Up?


Stijn Van Nieuwerburgh


New York University Stern School of Business, Department of Finance; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Pierre-Olivier Weill


University of California, Los Angeles; National Bureau of Economic Research (NBER)

February 5, 2009

NYU Working Paper No. FIN-06-010

Abstract:     
We set up and solve a spatial, dynamic equilibrium model of the housing market based on two main assumptions: households with heterogenous abilities flow in and out metropolitan areas in response to local wage shocks, and the housing supply cannot adjust instantly because of regulatory constraints. In our equilibrium, house prices compensate for cross-sectional productivity differences. We increase productivity dispersion in the calibrated model in order to match the 30-year increase in cross-sectional wage dispersion that we document based on metropolitan-level data. We show that the model quantitatively matches the observed 30-year increase in dispersion of house prices across U.S. metropolitan areas. It is consistent with several other features of the cross-sectional distribution of house prices and wages.

Number of Pages in PDF File: 75

working papers series





Download This Paper

Date posted: November 3, 2008 ; Last revised: February 25, 2009

Suggested Citation

Van Nieuwerburgh, Stijn and Weill, Pierre-Olivier, Why Has House Price Dispersion Gone Up? (February 5, 2009). NYU Working Paper No. FIN-06-010. Available at SSRN: http://ssrn.com/abstract=1293642

Contact Information

Stijn Van Nieuwerburgh (Contact Author)
New York University Stern School of Business, Department of Finance ( email )
44 West 4th Street
Suite 9-190
New York, NY 10012-1126
United States
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
Pierre-Olivier Weill
University of California, Los Angeles ( email )
Box 951477
Los Angeles, CA 90095-1477
United States
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Feedback to SSRN


Paper statistics
Abstract Views: 1,122
Downloads: 267
Download Rank: 43,898
References:  63
Citations:  26

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo1 in 0.313 seconds