Thick‐Market Effects, Housing Heterogeneity, and the Determinants of Transaction Seasonality

22 Pages Posted: 7 Jan 2017

See all articles by Plamen Nenov

Plamen Nenov

BI Norwegian Business School

Erling Røed Larsen

BI Norwegian Business School

Dag Einar Sommervoll

BI Norwegian Business School - Department of Economics

Date Written: December 2016

Abstract

This article uses cross‐sectional variation in transaction seasonality and a search‐theoretic framework to develop a test for thick‐market effects from matching efficiency. The test relates the extent of transaction seasonality to the degree of horizontal housing heterogeneity. We find a strong positive association between measures of seasonality and housing heterogeneity using a transaction level dataset for Norway, which is consistent with the presence of thick‐market effects. These results also show that the degree of horizontal heterogeneity of the housing stock is an important determinant of the extent of seasonality in a housing market.

Suggested Citation

Nenov, Plamen and Røed Larsen, Erling and Sommervoll, Dag Einar, Thick‐Market Effects, Housing Heterogeneity, and the Determinants of Transaction Seasonality (December 2016). The Economic Journal, Vol. 126, Issue 598, pp. 2402-2423, 2016, Available at SSRN: https://ssrn.com/abstract=2895185 or http://dx.doi.org/10.1111/ecoj.12305

Plamen Nenov (Contact Author)

BI Norwegian Business School ( email )

Nydalsveien 37
Oslo, 0442
Norway

Erling Røed Larsen

BI Norwegian Business School ( email )

Nydalsveien 37
Oslo, 0442
Norway

Dag Einar Sommervoll

BI Norwegian Business School - Department of Economics ( email )

Nydalsveien 37
Oslo, 0484
Norway

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