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作者

来源

来源 JOURNAL OF URBAN ECONOMICS,Vol.67,P.164-178

语言

英文

关键字

G12;G21;R31;Foreclosure;Contagion;Repeat Sales

作者单位

University of Connecticut, 2100 Hillside Road, Storrs, CT 06269-1041, United States"}]},{"#name":"affiliation","$":{"id":"aff2;Fannie Mae, 3900 Wisconsin Ave NW, Washington, DC 20016, United States"}]},{"#name":"correspondence","$":{"id":"cor1;University of Connecticut, 2100 Hillside Road, Storrs, CT 06269-1041, United States"}]},"aff2":{"#name":"affiliation","$":{"id":"aff2;Fannie Mae, 3900 Wisconsin Ave NW, Washington, DC 20016, United States"}]}},"correspondences":{"cor1":{"#name":"correspondence","$":{"id":"cor1

摘要

Although previous research shows that prices of homes in neighborhoods with foreclosures are lower than those in neighborhoods without foreclosures, it remains unclear whether the lower prices are the result of a general decline in neighborhood values or whether foreclosures reduce the prices of nearby non-distressed sales through a contagion effect. We provide robust evidence of a contagion discount by simultaneously estimating the local price trend and the incremental price impact of nearby foreclosures. At its peak, the discount is roughly 1% per nearby foreclosed property. The discount diminishes rapidly as the distance to the distressed property increases. The contagion discount grows from the onset of distress through the foreclosure sale and then stabilizes. This pattern is consistent with the contagion effect being the visual externality associated with deferred maintenance and neglect.