Housing Prices Propagation: A Theory of Spatial Interactions by Etienne Wasmer

Join us for this weeks Macroeconomics Research Seminar, Summer Term 2024.

Etienne Wasmer, from the New York University, Abu Dhabi, will present this weeks Macroeconomics seminar on Housing Prices Propagation: A Theory of Spatial Interactions.

Abstract

A puzzle is that price-to-rent ratios in the housing market vary a lot in time and space, even after accounting for differences in local discount rates or rent growth differences. We propose a variant of asset pricing equations for housing markets that include a price gradient in space. It is analogous to the transport equation in physics and generates a new range of solutions consistent with the facts. The rationale for the price gradient in the asset pricing equation it is the existence of spatial search frictions for housing. It is supported by the data analysis of a large urban area, Paris region.

This seminar will be held on campus in the Economics Common Room at 1.30pm on Tuesday 4 June 2024. This event is open to all levels of study and is also open to the public. To register your place, please contact the seminar organisers.

This event is part of the Macroeconomics Research Seminar Series.