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	Sticky Asset Prices

Lunedì

02.12

SI-006 (Black building)

12:00


	Cloé Garnache Professor of Economics at the HousingLab at Oslo Metropolitan University

We use an unexpected and geographically confined change in residential electricity prices to shock the fundamental value of a large cross section of homes. We identify a negative 4\% effect on residential real estate prices and a negative 11\% effect on sales volume. The negative effect on sales volume suggests that asset prices do not drop enough but are downward-sticky, which carries potential implications for asset pricing, macro, and monetary theory. The negative effect on sales volume suggests that asset prices do not drop enough but are downward-sticky, which carries potential implications for asset pricing, macro, and monetary theory.