Sample Selection Approaches to Estimating and Allocating House Transaction Funding Price Differentials
| Autor: | Andres Jauregui, Alan Tidwell, Vivek Sah |
|---|---|
| Rok vydání: | 2018 |
| Předmět: |
Sample selection
Economics and Econometrics Counterfactual conditional business.industry media_common.quotation_subject 05 social sciences 0211 other engineering and technologies Hedonic pricing 021107 urban & regional planning 02 engineering and technology Urban Studies Transaction price Accounting Cash 0502 economics and business Econometrics Economics 050207 economics business Price differential Database transaction Finance Financial services media_common |
| Zdroj: | The Journal of Real Estate Finance and Economics. 58:366-407 |
| ISSN: | 1573-045X 0895-5638 |
| Popis: | This study examines house transaction price differentials observed among funding type combinations; accounting for potential sample selection and spatial biases yields a better approximation of price differentials between group combinations. Consistent with expectations we detect, and correct for, selectivity and spatial biases. Transactions with conventional financing have superior characteristics compared to all-cash funded transactions, and Federal Housing Administration (FHA) and Veterans Affairs (VA) funded houses have inferior characteristics relative to all-cash characteristics. Price counterfactuals for (1) all-cash financed property, (2) conventional, (3) FHA, and (4) VA property transactions reveal, consistent with expectations, unexplained coefficient pricing premiums, i.e., a financing premium. However, total all-cash explained housing/neighborhood characteristics, are superior relative to FHA and VA financed properties. Results reinforce the notion that credit matters in the provision of financial services with regard to housing prices, while Blinder-Oaxaca price differential decompositions provide additional insights. |
| Databáze: | OpenAIRE |
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