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Housing search frictions and optimal search

ISSN: 0165-1765 ;EISSN: 1873-7374 ;DOI: 10.1016/j.econlet.2020.108980

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  • Title:
    Housing search frictions and optimal search
  • Author: Koster, Hans R.A ; van Ommeren, Jos
  • Subjects: Housing market ; Optimal search ; Search frictions
  • Description: By deriving a ‘housing market Hosios condition’, we show that the main conclusions of the seminal paper on housing search frictions by Wheaton (1990) were erroneously derived. We show that households may search too much, optimally, or too little, which is in contrast to the paper's conclusion that they always search too little. Furthermore, we show that exogenous increases in housing vacancies always have a negative effect on house prices, given standard assumptions.
  • Creation Date: 2020-04
  • Language: English
  • Identifier: ISSN: 0165-1765
    EISSN: 1873-7374
    DOI: 10.1016/j.econlet.2020.108980
  • Source: Vrije Universiteit
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