Competing Risks in a Time on the Market Analysis

Arbeitspapier

Theoretical models on the selling process in the housing market are scarce. Taylor (1999) specifies a model where time-on-the-market gives a quality signal of the house to potential buyers if inspection outcomes of the house are not public. We specify a duration model with competing risks, where the competing risks are a sale or a withdrawal from the market. We use a unique administrative dataset from the Netherlands. We find negative duration dependence in the hazard of sale and positive duration dependence in the hazard of withdrawal confirming the empirical predictions from Taylor (1999).

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Tinbergen Institute Discussion Paper ; No. 10-108/2

Classification and Topics

• Classification: Wirtschaft ; Asset Pricing; Trading Volume; Bond Interest Rates ; Duration Analysis; Optimal Timing Strategies ; Household Saving; Personal Finance ; Real Estate Markets, Spatial Production Analysis, and Firm Location: General
• Subject: time-on-the-market ; duration models ; household finance ; housing market ; Wohnungsmarkt ; Produktqualität ; Konsumentenverhalten ; Lernprozess ; Niederlande

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): de Wit, Erik R.
• Event: Veröffentlichung
• (who): Tinbergen Institute
• (where): Amsterdam and Rotterdam
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/87094
• Last update: 10.03.2025, 11:46 AM CET