Fire Sales and House Prices: Evidence from Estate Sales Due to Sudden Death

Fire Sales and House Prices: Evidence from Estate Sales Due to Sudden Death

This study investigates when forced sales turn into fire sales by using a natural experiment which allows us to separate supply and demand effects: Forced sales result from sudden death of house owners and are thus unrelated to current market conditions. We find that forced sales result in fire sale discounts. Discounts increase when the sale is urgent, market conditions are poor, the seller is...

Regular prices and sales

Cournot Fire Sales

In standardWalrasian macro-finance models, pecuniary externalities such as fire sales lead to overinvestment in illiquid assets or underprovision of liquidity. We investigate whether imperfect competition (Cournot) improves welfare through internalizing the externality and find that this is far from guaranteed. In a standard model of liquidity shocks, when liquidity is sufficiently scarce, Cour...

Regular Prices and Sales ∗ Paul

It is widely known that loss aversion leads individuals to dislike risk, and as has been argued by many researchers, in many instances this creates an incentive for firms to shield consumers and employees against economic risks. Complementing previous research, we show that consumer loss aversion can also have the opposite effect: it can lead a firm to optimally introduce risk into an otherwise...

Sudden death due to the Acetone toxicity

Propanone is a volatile liquid that can be absorbed by ingestion, inhalation, dermal and is distributed throughout the body. In this study, a fatal case involving acetone poisoning, who was worked in the Red Crescent Medical Center is presented. The deceased was found four hours after death. He was a 25-year-old male nurse and not married. There are the history of smoking since four years ago, ...