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Improved information shock and price dispersion: A natural experiment in the housing market

Danny Ben-Shahar, Roni Golan

Research output: Contribution to journalArticlepeer-review

Abstract

This study employs data from a natural experiment to assess the effect of an improved price information shock on subsequent real estate transaction price dispersion. While transaction data in the Israeli real estate market had not previously been available to the public, in 2010 an Israeli court ordered the Israel Tax Authority to post all real estate transaction data on its website. We employ all housing transactions in the period prior and subsequent to this event to assess its effect on housing price dispersion. Results provide evidence of significant decrease in the dispersion of quality-adjusted prices. Further, we find evidence that the information shock effect on price dispersion varies with household and market characteristics.

Original languageEnglish
Pages (from-to)70-84
Number of pages15
JournalJournal of Urban Economics
Volume112
DOIs
StatePublished - Jul 2019

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 11 - Sustainable Cities and Communities
    SDG 11 Sustainable Cities and Communities

Keywords

  • Information
  • Market characteristics
  • Price dispersion
  • Real estate

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics
  • Urban Studies

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