Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/288609 
Year of Publication: 
2020
Citation: 
[Journal:] Journal of Business Economics [ISSN:] 1861-8928 [Volume:] 90 [Issue:] 7 [Publisher:] Springer [Place:] Berlin, Heidelberg [Year:] 2020 [Pages:] 1057-1086
Publisher: 
Springer, Berlin, Heidelberg
Abstract: 
In this paper, the liquidity (inverse of time on market) of rental dwellings and its determinants for different liquidity quantiles are examined for the seven largest German cities. The determinants are estimated using censored quantile regressions in order to investigate the impact on very liquid to very illiquid dwellings. As market heterogeneity is not only observed between cities but also within a city, each of the seven cities is considered individually. Micro data for almost 500,000 observations from 2013 to 2017 is used to examine the time on market. Substantial differences in the magnitude and direction of the regression coefficients for the different liquidity quantiles are found. Furthermore, both the magnitude and direction of the impact of an explanatory variable on the liquidity, differ between the cities. To the best of the authors’ knowledge this is the first paper, to apply censored quantile regressions to liquidity analysis of the real estate rental market. The model reveals that the proportionality assumption underlying the Cox proportional hazards model cannot be confirmed for all variables across all cities, but for most of them.
Subjects: 
Residential
Housing
Liquidity
Censored quantile regression
Time on market
JEL: 
C31
C34
R21
R32
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

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