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- Title
Matching in Housing Markets: The Role of Ethnic Social Networks.
- Authors
Agarwal, Sumit; Choi, Hyun-Soo; He, Jia; Sing, Tien Foo
- Abstract
This paper investigates the role of ethnic matching between buyers and sellers in Singapore's public housing market. We find that sellers sell homes in blocks with a high concentration of their own (other) ethnic group(s) at significant premiums (discounts). Chinese sellers earn 1.7% higher premiums when selling homes to Chinese buyers in high Chinese concentrations housing blocks, but Malay sellers accept 1.6% discounts from Malay buyers in the same blocks. We find that the high volume of within-ethnicity transactions with the price discounts is supported by the ethnic social networks, that is, through ethnicity-specialized real estate agents. Received May 3, 2017; editorial decision July 4, 2018 by Editor Stijn Van Nieuwerburgh.
- Subjects
HOUSING market; SOCIAL networks; ETHNIC groups; PUBLIC housing; CONSUMERS; REAL estate agents; DISCOUNT prices
- Publication
Review of Financial Studies, 2019, Vol 32, Issue 10, p3958
- ISSN
0893-9454
- Publication type
Article
- DOI
10.1093/rfs/hhz006