in The Review of Financial Studies
November 2010; p ublished online October 2010 .
Journal Article. Subjects: Multiple or Simultaneous Equation Models; Multiple Variables; Household Behaviour and Family Economics; Intertemporal Choice and Growth; Mobility, Unemployment, and Vacancies; Household Analysis. 18059 words.
This article examines how price risk affects housing demand. It identifies two relevant channels: a financial risk effect that reduces demand, and a hedging effect that increases demand...