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The home market effect was first proposed by Corden [3] and was developed by Paul Krugman in a 1980 article. [4] Krugman sought to provide an alternative to the Linder hypothesis . Based on recent research, the home market effect confirms Linder's sentiment that a nation's demand is a predicate for its exports, but does not support Linder's ...
The effect of real estate market adjustments tend to be mitigated by the relatively large stock of existing buildings. Heterogeneity. Every unit of real estate is unique in terms of its location, the building, and its financing. This makes pricing difficult, increases search costs, creates information asymmetry, and greatly restricts ...
But economists and housing market experts say sweeping changes are hardly so simple. ... Those effects mean mortgage rates, too, may stay stuck at 7% or more, and homebuilders could face higher ...
Some real estate professionals have warned that the new rules could have a chilling effect on the home-buying market since more buyers may now be expected to come up with cash to pay their own agents.
The home market effect showed a relationship in the gravity estimation for differentiated goods, but showed the inverse relationship for homogeneous goods. The authors show that this result matches the theoretical predictions of reciprocal dumping playing a role in homogeneous markets.
Buying a home and building equity is an essential factor in net worth. Consider this: In 2022, homeowners had a median net worth of $396,200, while renters and other non-homeowners had a net worth ...