Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/86829
Authors: 
de Wit, Erik R.
van der Klaauw, Bas
Year of Publication: 
2010
Series/Report no.: 
Tinbergen Institute Discussion Paper 10-038/3
Abstract: 
In housing markets with asymmetric information list prices may signal unobserved properties of the house or the seller. Asymmetric information is the starting point of many models for the housing market. In this paper, we estimate the causal effect of list-price reductions to test for the presence of asymmetric information. We use very rich and extensive administrative data from the Netherlands. Our empirical results show that list-price reductions significantly increase the probability of selling a house, but also the rate of withdrawal from the market increases.
Subjects: 
Time-on-the-market
duration analysis
transaction prices
selectivity
JEL: 
C41
D82
R21
R31
Document Type: 
Working Paper

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