Thick-market effects, housing heterogeneity, and the determinants of transaction seasonality
Journal article, Peer reviewed
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- Scientific articles 
Original versionThe Economic Journal, 126(2016)598, 2402-2423 http://dx.doi.org/10.1111/ecoj.12305
This article uses cross-sectional variation in transaction seasonality and a search-theoretic framework to develop a test for thick-market effects from matching efficiency. The test relates the extent of transaction seasonality to the degree of horizontal housing heterogeneity. We find a strong positive association between measures of seasonality and housing heterogeneity using a transaction level dataset for Norway, which is consistent with the presence of thick-market effects. These results also show that the degree of horizontal heterogeneity of the housing stock is an important determinant of the extent of seasonality in a housing market.
This is the accepted and peer reviewed manuscript.