Get the free Staff Working Paper No. 1,054

This paper studies the aggregate implications of reference-dependent preferences in the housing market, emphasizing how behavioral frictions and loss aversion affect homeowner behavior, price growth, and transaction volumes. It employs a dynamic search and matching equilibrium model validated with substantial administrative data from the UK housing market, revealing significant insights into how nominal gains and losses influence market outcomes and policy considerations.

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Staff working paper no is a formal document used by organizations to communicate and record information related to audits, evaluations, or assessments.

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The purpose of staff working paper no is to serve as a detailed record of the work performed, providing evidence to support conclusions and findings during audits or evaluations.

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