Code for: Reference Dependence in the Housing Market

Principal Investigator(s):  View help for Principal Investigator(s) Steffen Andersen, Copenhagen Business School; Cristian Badarinza, National University of Singapore; Lu Liu, Imperial College London; Julie Marx, Copenhagen Business School; Tarun Ramadorai, Imperial College London

Version:  View help for Version V1

Name File Type Size Last Modified
0_0_Main.do text/plain 2.2 KB 05/15/2022 09:28:AM
0_1_Globals.do text/plain 9.5 KB 05/14/2022 11:09:AM
1_0_DataGeneration.do text/plain 1.3 KB 05/14/2022 11:09:AM
1_10_FindMortgage.do text/plain 10.7 KB 05/14/2022 11:09:AM
1_11_PurchasingPrice.do text/plain 1.8 KB 05/14/2022 11:09:AM
1_12_Buyers.do text/plain 3.2 KB 05/14/2022 11:09:AM
1_13_Listings.do text/plain 17.4 KB 05/14/2022 11:09:AM
1_14_CollateData.do text/plain 64.7 KB 05/14/2022 11:09:AM
1_15_CleanData.do text/plain 10.3 KB 05/14/2022 11:09:AM
1_1_Keys.do text/plain 8.7 KB 05/14/2022 11:09:AM
    Total of 58 records. Records per page
  • « previous
    •  Page  of 6
  • next »

Project Citation: 

Andersen, Steffen, Badarinza, Cristian, Liu, Lu, Marx, Julie, and Ramadorai, Tarun. Code for: Reference Dependence in the Housing Market. Nashville, TN: American Economic Association [publisher], 2022. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2022-09-29. https://doi.org/10.3886/E170401V1

Project Description

Summary:  View help for Summary
We quantify reference dependence and loss aversion in the housing market using rich Danish administrative data. Our structural model includes loss aversion, reference dependence, financial constraints, and a sale decision, and matches key nonparametric moments, including a ``hockey stick" in listing prices with nominal gains, and bunching at zero realized nominal gains. Households derive substantial utility from gains over the original house purchase price; losses affect households roughly 2.5 times more than gains. The model helps explain the positive correlation between aggregate house prices and turnover, but cannot explain visible attenuation in reference dependence when households are more financially constrained.

Scope of Project

Subject Terms:  View help for Subject Terms Housing; Mortgages; Loss aversion; Reference dependence; Down-payment constraints
JEL Classification:  View help for JEL Classification
      D12 Consumer Economics: Empirical Analysis
      D14 Household Saving; Personal Finance
      G50 Household Finance: General
      R21 Urban, Rural, Regional, Real Estate, and Transportation Economics: Housing Demand
Geographic Coverage:  View help for Geographic Coverage Denmark
Time Period(s):  View help for Time Period(s) 1992 – 2016
Data Type(s):  View help for Data Type(s) administrative records data

Methodology

Unit(s) of Observation:  View help for Unit(s) of Observation Households

Related Publications

Download this project

Published Versions

V1 [2022-09-29]

Export Metadata

Dublin Core

DDI 2.5

Report a Problem

Found a serious problem with the data, such as disclosure risk or copyrighted content? Let us know.

This material is distributed exactly as it arrived from the data depositor. ICPSR has not checked or processed this material. Users should consult the investigator(s) if further information is desired.