A search-theoretic model of the rental and homeownership markets

Kashiwagi, Masanori

doi:10.1016/j.jhe.2014.07.001

Cited by 18 publications

(12 citation statements)

References 22 publications

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“…We carried out a Factiva keywords search to investigate this. 54 A search for "Sung Hung Kai" and "award", retrieved 163 news articles reporting numerous accolades. 55 52 There are economic reasons suggested for such oligopolistic market structure, despite the fact that a significant amount of land sale is conducted through open auction.…”

Section: Data and Popularity Index Constructionmentioning

confidence: 99%

“…53 Among others, see Mas-Colell et al (1995) for more discussion of the signalling theory and reputation. 54 Factiva.com is a global news database with wide coverage in Chinese publications as well. We initiate the search in the language of traditional Chinese.…”

Section: Data and Popularity Index Constructionmentioning

confidence: 99%

“…(Italic added). 3 Clearly, there are exceptions, such as Kashiwagi (2014). More discussion is to be followed.…”

Section: Introductionmentioning

confidence: 99%

“…a situation when economic agents are relocated among different states or cities that are far from each other. Hence, it is natural for Kashiwagi (2014) to calibrate his model to match the aggregate data of the US. In terms of modelling strategy, the assumption that homeowners need to sell their houses immediately and move to another location is analogous to the "job destruction model" developed in the seminal work of Mortensen and Pissarides (1994), where workers need to search for new jobs once they receive the separation shocks, because their jobs are "destroyed."…”

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confidence: 99%

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What Account for the Differences in Rent-Price Ratio and Turnover Rate? A Search-and-Matching Approach

Huang

Leung

Tse³

2017

SSRN Journal

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We build an on-the-house-search model and show analytically that the rentto-price ratio (or rental yield) and turnover rate, which are frequently used metrics for the housing market, are jointly determined in equilibrium. We therefore adopt a simultaneous equation approach on matched sale-rental pairs in our empirical investigation, as a housing unit cannot be owner-occupied and renter-occupied at the same time. Our empirical results confirm a higher turnover rate is associated with a lower rent-to-price ratio, as predicted by the model. Furthermore, our results suggest a form of "dichotomy" in the empirical determinants of rental yield and turnover at the real-estate-development (RED) level: the demographic structure, and past return performance affect its turnover rate, while popularity, human capital environment, mortgage burden, and long run rent growth determine the rental yield. The robustness of our results are established through a series of tests. In addition to these findings, our tractable search-theoretic model, a ranking of more than 130 RED in Hong Kong based on the popularity index we construct, and the estimated brandpremium for different major real estate developers may also carry independent research and practical interests.

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Section: Data and Popularity Index Constructionmentioning

confidence: 99%

Section: Data and Popularity Index Constructionmentioning

confidence: 99%

“…(Italic added). 3 Clearly, there are exceptions, such as Kashiwagi (2014). More discussion is to be followed.…”

Section: Introductionmentioning

confidence: 99%

mentioning

confidence: 99%

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What Account for the Differences in Rent-Price Ratio and Turnover Rate? A Search-and-Matching Approach

Huang

Leung

Tse³

2017

SSRN Journal

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“…Igarashi (1991) develops a theoretical model with a Diamond-type random-matching mechanism, focusing on the rental housing market, while Wheaton (1990) looks at the owner-occupied housing market. Kashiwagi (2014) presents a simple model of the rental and home-ownership markets in a uni ed framework.…”

Section: Introductionmentioning

confidence: 99%

Search in apartment swap market

Petreski¹

2019

26th Annual European Real Estate Society Conference

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This paper develops a theoretical search model of apartment swap in the rental market. Using random matching mechanism, we mimic the informal Swedish swap market, which is characterized by strong rent control and dominant ownership of the apartments by municipalities. Our proposed framework captures supply and demand dynamics of the rental market, segmented into households with rented small or big municipal apartments, searching and trying to swap apartments between each other. In the basic setup, in isolation of rental market, the value of the swap is a function of the structure of the population, probabilities of match, probability of cancelling the swap agreement and the di erential in the utility gains of matching swap counter-parties. When integrated with the classical rental market, the swap market re ects not only the supply/demand conditions in the swap market, but also the tightness in the rental market. Vice-versa, a well developed swap rental market a ects the rental market, so with an increase in the probability of successful swap of a particular rental apartment, the apartment rent value increases.

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A Real Options Analysis on Speculative Bubbles in Housing Market: Considering Seoul Metropolis Case

Park

2019

Contemporary Issues in Applied Economics

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A search-theoretic model of the rental and homeownership markets

Cited by 18 publications

References 22 publications

What Account for the Differences in Rent-Price Ratio and Turnover Rate? A Search-and-Matching Approach

What Account for the Differences in Rent-Price Ratio and Turnover Rate? A Search-and-Matching Approach

Search in apartment swap market

A Real Options Analysis on Speculative Bubbles in Housing Market: Considering Seoul Metropolis Case

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