House Prices, Local Demand, and Retail Prices

This draft: June 2016. We are grateful to Viral Acharya, Manuel Adelino, David Berger, Jeff Campbell, Lawrence Christiano, Eduardo Davila, Jonathan Dingel, Martin Eichenbaum, Eduardo Engel, Erwin Gautier, Ed Glaeser, Francois Gourio, Jessie Handbury, Erik Hurst, Chang-Tai Hsieh, Nir Jaimovich, Alejandro Justiniano, Greg Kaplan, Anil Kashyap, Amir Kermani, Pete Klenow, Theresa Kuchler, John Leahy, Amy Meek, Atif Mian, Kurt Mitman, Holger Mueller, Emi Nakamura, Stijn van Nieuwerburgh, Matt Notowidigdo, Cecilia Parlatore, Andrea Pozzi, Alexi Savov, Jon Steinsson, Amir Sufi, Harald Uhlig, Laura Veldkamp, and Michael Weber, and seminar participants at MIT, Harvard, Berkeley, Stanford, LSE, Cornell, Wharton, University of Southern California, Chicago Booth, New York University, New York Fed, Minneapolis Fed, Fed Board, Ohio State University, UW Milwaukee, University of Hawaii, Leuven, University of Iowa, New York Junior Macro-Finance Workshop, Mannheim, Munich, Frankfurt, NBER EF&G, NBER Summer Institute, Society for Economic Dynamics, Econometric Society World Congress, Banque of France, Yale Cowles Conference, and the Junior Macro Workshop in New Orleans for helpful suggestions. We thank David Argente for outstanding research assistance. The Institute for Global Markets at Chicago Booth provided financial support. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

• November 24, 2014
• April 30, 2015