000			02965cam a22003617 4500
001			w28796
003			NBER
005			20211020103204.0
006			m o d
007			cr cnu||||||||
008			210910s2021 mau fo 000 0 eng d
100	1		_aRoss, Stephen L.
245	1	0	_aLoss Aversion in Housing Sales Prices: _bEvidence from Focal Point Bias / _cStephen L. Ross, Tingyu Zhou.
260			_aCambridge, Mass. _bNational Bureau of Economic Research _c2021.
300			_a1 online resource: _billustrations (black and white);
490	1		_aNBER working paper series _vno. w28796
500			_aMay 2021.
520	3		_aEstimates of loss aversion in housing sales prices may be biased because expected losses correlate with housing and borrower unobservables. We provide new evidence of loss aversion in sales price by differencing loss aversion estimates between sellers who exhibit focal point bias in their initial mortgage amount and those who do not. Although focal point bias and loss aversion are associated with different families of behaviors, recent evidence suggests links between these biases. Revisiting experimental data, subjects with high levels of loss aversion were more likely to use round numbers. Using housing data, estimates of loss aversion are 10 percentage points higher for sellers with round number mortgage amounts as a share of expected loss. Differences in expected loss are balanced over both housing and mortgage attributes, are stable as additional of controls are added, and are robust to using a discontinuity style regression centered on mortgage amounts of round numbers. On the other hand, traditional estimates of loss aversion fall by as much as 73 percent as additional controls are added. This study provides unique evidence that loss aversion and focal point bias are found together, and presents new, more robust evidence that loss aversion influences housing sales prices.
530			_aHardcopy version available to institutional subscribers
538			_aSystem requirements: Adobe [Acrobat] Reader required for PDF files.
538			_aMode of access: World Wide Web.
588	0		_aPrint version record
690		7	_aD91 - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making _2Journal of Economic Literature class.
690		7	_aG21 - Banks • Depository Institutions • Micro Finance Institutions • Mortgages _2Journal of Economic Literature class.
690		7	_aR21 - Housing Demand _2Journal of Economic Literature class.
690		7	_aR31 - Housing Supply and Markets _2Journal of Economic Literature class.
700	1		_aZhou, Tingyu.
710	2		_aNational Bureau of Economic Research.
830		0	_aWorking Paper Series (National Bureau of Economic Research) _vno. w28796.
856	4	0	_uhttps://www.nber.org/papers/w28796
856			_yAcceso en línea al DOI _uhttp://dx.doi.org/10.3386/w28796
942			_2ddc _cW-PAPER
999			_c388033 _d346595