Online Appendix for: Is the Behavior of Sellers with Expected Gains and Losses Relevant to Cycles in House Prices?

Abstract

This is the Online Appendix for: Is the Behavior of Sellers with Expected Gains and Losses Relevant to Cycles in House Prices? Appendix 1 provides support for using assessed value to mitigate unobserved quality. Appendix 2 describes the calculation of normalized assessed value (NAV) and summarizes results of leave-one-out (LOO) cross-validation. Appendix 3 summarizes the analytical framework. Appendix 4 displays our sample construction process. Appendix 5 reports the first-stage hedonic regression results. Appendix 6 shows the comparison between repeat sales index (based on repeat sales pairs), loss index and gain index. Appendix 7 provides additional summary statistics that supplement Table 2. Appendix 8 summarizes double results using asking price. Appendix 9 summarizes results using an alternative house price cycle. Appendix 10 reports additional robustness tests. • A10.1 report robustness tests with various combinations of spatial and temporal fixed effects. • A10.2 report robustness tests by restricting to the repeat sale sample only. • A10.3 report results using asking price as the dependent variable. • A10.4 reports robustness tests by adding the loan-to-value ratio. Appendix 11 summarizes Clapp and Zhou (2019)’s method for correcting unobserved quality and report results using their method. Appendix 12 presents and discusses contrast-relative analyses holding loss/gain coefficients constant.