Competing risks in a time on the market analysis

Erik R. de Wit

Theoretical models on the selling process in the housing market are scarce. Taylor (1999) specifies a model where time-on-the-market gives a quality signal of the house to potential buyers if inspection outcomes of the house are not public. We specify a duration model with competing risks, where the competing risks are a sale or a withdrawal from the market. We use a unique administrative dataset from the Netherlands. We find negative duration dependence in the hazard of sale and positive duration dependence in the hazard of withdrawal confirming the empirical predictions from Taylor (1999).

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Year of publication:	2010
Authors:	Wit, Erik R. de
Publisher:	Rotterdam [u.a.] : Tinbergen Inst.
Subject:	time-on-the-market \| duration models \| household finance \| housing market \| Wohnungsmarkt \| Housing market \| Konsumentenverhalten \| Consumer behaviour \| Niederlande \| Netherlands \| Dauer \| Duration \| Theorie \| Theory \| Lernprozess \| Learning process \| Privater Haushalt \| Household