|
| |
| Gaetano Lisi |
| |
| ''The Hedonic Price Function in a Matching Model of Housing Market'' |
| ( 2011, Vol. 31 No.3 ) |
| |
| |
| This paper develops a theoretical model in which the matching framework à la Pissarides (2000) extended to the housing market is integrated with the hedonic price theory. Market tightness and selling price collectively determine the long-run equilibrium of the economic system in which a seller can become a buyer, and vice versa. As a result, the house price depends not only on the housing characteristics but also on the market tensions and bargaining power of the parties. This integration allows to overcome a major drawback of the hedonic price theory, namely the assumption of perfect competition. |
| |
| |
| Keywords: hedonic price theory, housing market, search and matching models |
JEL: R2 - Urban, Rural, and Regional Economics: Household Analysis: General
R3 - Production Analysis and Firm Location: General |
| |
| Manuscript Received : Jun 23 2011 | | Manuscript Accepted : Aug 21 2011 |
|
