Market thickness and the impact of unemployment on housing market outcomes Academic Article uri icon


  • 2018 Elsevier B.V. A search-and-matching model is developed to study how unemployment influences the housing market in the presence of the thick-market effect. A structural estimation of the model is conducted based on Texas city-level data that covers three years1990, 2000 and 2010. Simulations help clarify how much the thick-market effect amplifies the impact of unemployment. A three-percentage-point increase in the unemployment rate lowers the price by 10.74% and reduces the transaction volume by 5.49%. Incorporating a feedback mechanism from housing prices to unemployment strengthens the amplification magnitude of the thick-market effect.

published proceedings


altmetric score

  • 10

author list (cited authors)

  • Gan, L. i., Wang, P., & Zhang, Q.

citation count

  • 5

complete list of authors

  • Gan, Li||Wang, Pengfei||Zhang, Qinghua

publication date

  • October 2018