Review of Financial Studies · 2021 · 14 citations · 39 references
Social SciencesEconomicsUrban StudiesHousingReal Estate EconomicsUrban EconomicsHousing DemandHousing EconomicsHousing FinanceHousing MarketsSpillover EffectsUrban Public FinanceConsumer Spending BehaviorHousing Demand AnalysisHousing Market ImpactsHousing Price DynamicsProximity Effects On Housing DemandPurchase RestrictionsReal Estate Price EffectsUrban Housing Demand
Abstract We use a unique quasi-experiment–spillovers from the imposition of purchase restrictions on local housing to nearby unregulated cities–to study the effects of out-of-town housing demand on house prices and consumer spending. While these restrictions effectively stymied the surge in local house prices, they induced capital flight and sharp abnormal increases in house prices in nearby unregulated cities. The effect of the house price increases on consumer spending is positive in the aggregate, but echoing Favilukis and Van Nieuwerburgh (2021), is redistributive, that is, negative for renters and positive for homeowners. Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online
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Olivier Blanchard, Lawrence F. Katz, Robert E. Hall et al. · Brookings Papers on Economic Activity · 1992 · 1.4K citations