Real Estate Economics articles from December 2003

Real Estate Economics archives from December 2003

Is there a risk premium puzzle in real estate?(Editorial)
December 22, 2003... This paper is based on my Presidential Address to the American Real Estate and Urban Economics Association delivered at Washington, D.C., in January 2003. The paper asks whether there is a risk premium puzzle in real estate. I examine this...

The spatial distribution of housing-related ordinary income tax benefits.
December 22, 2003... We estimate how tax subsidies to owner-occupied housing are distributed spatially across the United States and find striking skewness. At the state level, the mean tax benefit per owned unit in 1990 ranged from $917 in South Dakota to $10,718...

A measure of fundamental volatility in the commercial property market.
December 22, 2003... The low level of volatility observed in appraisal-based commercial property indices relative to other asset classes has been frequently noted and extensively commented on in the real estate finance literature. However, the volatility of such...

Estimating bargaining effects in hedonic models: evidence from the housing market.
December 22, 2003... Bargaining is common in markets for heterogeneous goods and differences in bargaining power between buyer and seller affect the negotiated transaction price. Previous research has found systematic evidence in the housing markets that weak...

Modeling spatial variation in housing prices: a variable interaction approach.
December 22, 2003... The absolute location of each real estate parcel in an urban housing market has a unique location-value signature. Accessibility indices, distant gradients and locational dummies cannot fully account for the influence of absolute location on...

Rental expectations and the term structure of lease rates.
December 22, 2003... We consider the term structure of lease rates in a general setting where both rents and interest rates are stochastic. The framework is applicable to any leasing market, but we focus on real estate. We find that the "expectations hypothesis",...