Big House, Little House: Relative Size and Value

摘要: How do markets value relative house size in a neighborhood? The literature offers differing rationales: atypical houses sell for less, capitalization of property taxes penalizes larger and benefits smaller mixed neighborhoods conspicuous consumption reinforces the relatively reduces to consumers. Using simultaneous price-liquidity model that controls neighborhood supply demand conditions, this article finds dominant tax effect on price marketing time appears override any extant atypicality or effects.