Cash and Distressed House Sales Price Discounts: Dual Sample Selection Spatial Interdependence Approaches
| Autor: | Alan Tidwell, Vivek Sah, Andres Jauregui, Andrew Narwold |
|---|---|
| Rok vydání: | 2016 |
| Předmět: |
Counterfactual thinking
Economics and Econometrics Counterfactual conditional Financial economics media_common.quotation_subject Sample (statistics) Affect (psychology) behavioral disciplines and activities Frequency Accounting 0502 economics and business Econometrics Economics 050207 economics health care economics and organizations Financial services media_common 050208 finance business.industry 05 social sciences Dual (category theory) Urban Studies Cash business human activities Finance |
| Zdroj: | The Journal of Real Estate Finance and Economics. 56:101-139 |
| ISSN: | 1573-045X 0895-5638 |
| Popis: | Beginning with a hedonic price model, and then progressing to a method accounting for dual sample selectivity biases and spatial interdependence; we document (and correct for) these potential confounding biases, and produce price counterfactuals for (1) all-cash financed property, (2) distressed property, and (3) all-cash and distressed property transactions. Results provide evidence of self- selection biases with all-cash purchasers, distressed properties, and distressed and all-cash properties. Significant disparities in observed cash (−13% and −6.5%) and distressed property discounts (−1% and −6%) are documented in pre-and post-recessionary environments, Further, cash discounts are consistent for non-distressed transactions (−11%) during both periods; however cash discounts associated with non-distressed transactions are significantly reduced post-recession (−23.3% to −3.7%. This attenuation is attributed to a significant increase in the relative frequency of cash purchased distressed properties post-recession, i.e., larger percentage of cash buyers. Sub-sample counterfactual tests confirm prior results, and expand our understanding of all-cash and distressed discount determinants. These results provide insight into observed time variant all-cash, and distressed property discount affect sizes. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
|
Full text from SpringerLink