Matching in Housing Markets: The Role of Ethnic Social Networks

A-Tier
Journal: The Review of Financial Studies
Year: 2019
Volume: 32
Issue: 10
Pages: 3958-4004

Authors (4)

Sumit Agarwal (not in RePEc) Hyun-Soo Choi (not in RePEc) Jia He (not in RePEc) Tien Foo Sing (National University of Singapo...)

Score contribution per author:

1.005 = (α=2.01 / 4 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

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.

Technical Details

RePEc Handle
repec:oup:rfinst:v:32:y:2019:i:10:p:3958-4004.
Journal Field
Finance
Author Count
4
Added to Database
2026-01-29