Finance:Market tightness
Market tightness is a measure of the liquidity of a market.[1] High market tightness indicates relatively low liquidity and high transaction costs, whereas low market tightness indicates high liquidity and low transaction costs.[2] For example, during the dotcom bubble, information technology companies were very difficult and expensive to buy a part of, through stock, loan, or other methods, due to the tightness of competition in the market.[citation needed]
Equity markets
In equity markets, market tightness is measured using percentage relative spread.[3][2]
Housing markets
In housing markets, measures of market tightness include the probability of achieving a sale and house price appreciation. Tighter housing markets result in greater seller bargaining power and higher sale prices.[4]
Labour markets
Labour market tightness is measured as the ratio of job vacancies per unemployed person or jobseeker.[5]
References
- ↑ "market tightness". 17 July 2017. https://www.unescwa.org/sd-glossary/market-tightness.
- ↑ 2.0 2.1 Olbrys, J.; Mursztyn, M. (2019). "Depth, tightness and resiliency as market liquidity dimensions: evidence from the Polish stock market". International Journal of Computational Economics and Econometrics 9 (4): 308–326. doi:10.1504/IJCEE.2019.102513. https://www.researchgate.net/publication/333204993.
- ↑ Olbrys, J. (2020). "Market Tightness on the CEE Emerging Stock Exchanges in the Context of the Non-trading Problem". Advances in Cross-Section Data Methods in Applied Economic Research. Springer Proceedings in Business and Economics. Springer. pp. 553–569. doi:10.1007/978-3-030-38253-7_36. ISBN 978-3-030-38252-0. https://link.springer.com/chapter/10.1007/978-3-030-38253-7_36.
- ↑ Carrillo, P.E.; de Wit, E.R.; Larson, W. (2015). "Can tightness in the housing market help predict subsequent home price appreciation? Evidence from the United States and the Netherlands". Real Estate Economics 43 (3): 609–651. doi:10.1111/1540-6229.12082. https://www2.gwu.edu/~iiep/assets/docs/papers/Carrillo_IIEPWP2012-11.pdf.
- ↑ de Pedraza, P.; Guzi, M.; Tijdens, K. (2020). "Life satisfaction of employees, labour market tightness and matching efficiency". International Journal of Manpower. https://www.econstor.eu/bitstream/10419/215357/1/dp12961.pdf.
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