Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments November 20, 2020 erstellt
Beschreibung:
I create a novel monthly county-level Housing Price Index (henceforth HPI) using Panel data from FHFA, which has quarterly data on HPI1 at CBSA2-level, originally based on Repeat-Sales methodology, a supply-side measure. The seller has a reservation price for selling a property because of the anchoring bias, rendering an upward pressure on the HPI. Since, Housing Stock supply is highly inelastic, hence, this HPI is not the equilibrium measure. I resort to the novel Facebook Social Connectivity Index (henceforth SCI) and determine the indicators for intra and inter-CBSA HPI changes, by interacting HPI with SCI weights which generate a self-replicating long-short investment strategy based on intra-CBSA deciles from the stretching of the spatial correlation intra-CBSA from the COVID-19 shock till the time this shock dwindles. These stark distributional implications for the county-level demand for housing from COVID-19 shock can be captured through the spatial correlation of SCI