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Housing Market Equilibrium.pdf

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Preview of Housing Market Equilibrium
🔗 Source: stanford.edu
📊 Size: 43 KB
👤 Author: mpiazzes
⬇️ Downloads: 47

Summary

The equilibrium condition is η(h - μU) = m(1 - h)^α μ^(1 - α), where η is the probability of becoming unhappy, h is the number of owners, μU is the number of unhappy agents, m is a parameter, and α is a parameter. The value of a house (VH) is v / (r - η / (r + m + η)) + (v + c) / (r + m + η), where v is the dividend, r is the interest rate, and c is the search cost. The house price (p) is equal to VH.

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Description

The equilibrium condition is η(h - μU) = m(1 - h)^α μ^(1 - α), where η is the probability of becoming unhappy, h is the number of owners, μU is the number of...

Technical Information

  • File Format: PDF
  • File Size: 43 KB
  • Pages: 3
  • Language: EN
  • Author: mpiazzes
  • Total Downloads: 47
  • Last Updated: 4 weeks ago

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