Download or read book Testing for Information Asymmetries in Real Estate Markets written by Pablo Kurlat and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: We study equilibrium outcomes in markets with asymmetric information about asset values among both buyers and sellers. In residential real estate markets hard-to-observe neighborhood characteristics are a key source of information heterogeneity: sellers are usually better informed about neighborhood values than buyers, but there are some sellers and some buyers that are better informed than their peers. We propose a new theoretical framework for analyzing such markets with many heterogeneous assets and differentially informed agents. Consistent with the predictions from this framework, we find that changes in the seller composition towards (i) more informed sellers and (ii) sellers with a larger supply elasticity predict subsequent house-price declines and demographic changes in that neighborhood. This effect is larger for houses whose value depends more on neighborhood characteristics, and smaller for houses bought by more informed buyers. Our findings suggest that home owners have superior information about important neighborhood characteristics, and exploit this information to time local market movements.
Download or read book Information Asymmetries and Learning in Commercial Real Estate Markets written by Sumit Agarwal and published by . This book was released on 2018 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper empirically tests information asymmetries and learning in global commercial real estate markets. We find that foreign investors pay a premium of 3.6%, on average, relative to local investors for comparable properties in local markets. The premiums reflect information disadvantages of foreign investors, which are not correlated with the hiring of agents, anchoring to prices in their home market and selection bias. We show that learning from prior acquisition experience significantly reduces information disadvantages of foreign investors. Foreign investors could offset their initial disadvantages relative to the first-time local investors after four acquisition experiences in local markets. Quality of learning through more distant past acquisitions, acquisitions of real estate of the same type and in the same city could also reduce information asymmetries of foreign investors. However, we find that geographic proximity does not explain information asymmetries in cross-border investments experienced by foreign investors.
Download or read book Confronting Information Asymmetries written by Mark J. Garmaise and published by . This book was released on 2002 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper studies the role of asymmetric information in commercial real estate markets in the U.S. We propose a novel and exogenous measure of information based on the quality of property tax assessments in different regions. Employing direct and indirect information variables, we find strong evidence that information considerations are significant in this market. We show that market participants resolve information asymmetries by purchasing nearby properties, trading properties with long income histories, and avoiding transactions with informed professional brokers. The evidence that the choice of financing is used to address information concerns is mixed and weak
Download or read book Information Asymmetry with Heterogeneous Buyers and Sellers in the Housing Market written by Ling Li and published by . This book was released on 2019 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines how heterogeneous traders on both sides of transactions behave in the housing market under information asymmetry. Two types of buyers, namely, informed and uninformed buyers, correspond to local and non-local buyers in the empirical tests. Non-local housing buyers in Hong Kong pay a 2.8% premium over local buyers in the second-hand market for housing units with similar observable attributes. We distinguish real estate developers from sellers in the second-hand market. The former has an incentive and ability to reduce information asymmetry by providing a quality guarantee on the building structure and signaling with brand name, none of which can be fulfilled by sellers in the second-hand market. Empirical results show that developers' efforts to reduce information asymmetry allow them to fetch a higher price than sellers in the second-hand market, holding property characteristics constant. Such efforts are particularly valued by uninformed buyers as non-local buyers prefer to purchase in the first-hand market rather than in the second-hand market, especially when the problem of information asymmetry is serious.
Download or read book Information Asymmetries Financial Constraints and Institutional Investment written by Dragana Cvijanovic and published by . This book was released on 2019 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper we analyze the underlying economic mechanisms that might be driving the observed patterns in commercial real estate prices, as an interplay between buyer and seller characteristics (in terms of their size, capital constraints and market knowledge), and the timing and geographical location of these transactions. By jointly modelling the institutional investors' decision to invest in a particular real estate market and the effect of such decision on real estate prices and probability of sale, we find that, controlling for property-, and time-varying location specific-, as well as investor characteristics: largest buyers (sellers) tend to pay (sell for) a price premium for the otherwise identical property at the time of purchase (sale), relative to smallest buyers (sellers). Keeping investor size and investor financing constraints constant, more informed sellers tend to sell at a premium, while more informed buyers tend to buy at a discount. Furthermore, more informed sellers (buyers) are more likely to sell (buy), providing support to the argument that reduction in information asymmetry has a positive effect on asset liquidity. These results point to a significant role of private valuations and investor market informedness in commercial real estate markets, when financing choice is taken into account.
Download or read book Handbook of Regional and Urban Economics written by Gilles Duranton and published by Elsevier. This book was released on 2015-06-29 with total page 2064 pages. Available in PDF, EPUB and Kindle. Book excerpt: Developments in methodologies, agglomeration, and a range of applied issues have characterized recent advances in regional and urban studies. Volume 5 concentrates on these developments while treating traditional subjects such as housing, the costs and benefits of cities, and policy issues beyond regional inequalities. Contributors make a habit of combining theory and empirics in each chapter, guiding research amid a trend in applied economics towards structural and quasi-experimental approaches. Clearly distinguished from the New Economic Geography covered by Volume 4, these articles feature an international approach that positions recent advances within the discipline of economics and society at large. Emphasizes advances in applied econometrics and the blurring of "within" and "between" cities Promotes the integration of theory and empirics in most chapters Presents new research on housing, especially in macro and international finance contexts
Download or read book The New Era of Real Estate written by Gianluca Mattarocci and published by Springer Nature. This book was released on 2022-10-22 with total page 147 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book is intended to guide researchers interested in the world of innovation in real estate finance linked to technology and provide new evidence on classifying and evaluating the performance of PropTech companies. Chapters will deal with the evolution of PropTech, possible business models, negotiation and property management tools, new property financing tools (p2p lending and crowdfunding), the market and the balance sheet analysis of PropTech companies in Europe. A valuable resource for researchers studying the real estate industry, this book is also relevant to those studying FinTech and the impact of technology on industry more broadly. It can also be of use to professionals in the real estate industry, looking for a cutting edge research-based study on PropTech.
Download or read book Handbook of Regional and Urban Economics vol 5B written by Gilles Duranton and published by Elsevier. This book was released on 2015-05-15 with total page 967 pages. Available in PDF, EPUB and Kindle. Book excerpt: Developments in methodologies, agglomeration, and a range of applied issues have characterized recent advances in regional and urban studies. Volume 5 concentrates on these developments while treating traditional subjects such as housing, the costs and benefits of cities, and policy issues beyond regional inequalities. Contributors make a habit of combining theory and empirics in each chapter, guiding research amid a trend in applied economics towards structural and quasi-experimental approaches. Clearly distinguished from the New Economic Geography covered by Volume 4, these articles feature an international approach that positions recent advances within the discipline of economics and society at large. Editors are recognized as leaders and can attract an international list of contributors Regional and urban studies interest economists in many subdisciplines, such as labor, development, and public economics Table of contents combines theoretical and applied subjects, ensuring broad appeal to readers
Download or read book Managing Information in the Roman Economy written by Cristina Rosillo-López and published by Springer Nature. This book was released on 2020-12-23 with total page 340 pages. Available in PDF, EPUB and Kindle. Book excerpt: This volume studies information as an economic resource in the Roman World. Information asymmetry is a distinguishing phenomenon of any human relationship. From an economic perspective, private or hidden information, opposed to publicly observable information, generates advantages and inequalities; at the same time, it is a source of profit, legal and illegal, and of transaction costs. The contributions that make up the present book aim to deepen our understanding of the economy of Ancient Rome by identifying and analysing formal and informal systems of knowledge and institutions that contributed to control, manage, restrict and enhance information. The chapters scrutinize the impact of information asymmetries on specific economic sectors, such as the labour market and the market of real estate, as well as the world of professional associations and trading networks. It further discusses structures and institutions that facilitated and regulated economic information in the public and the private spheres, such as market places, auctions, financial mechanisms and instruments, state treasures and archives. Managing Asymmetric Information in the Roman Economy invites the reader to evaluate economic activities within a larger collective mental, social, and political framework, and aims ultimately to test the applicability of tools and ideas from theoretical frameworks such as the Economics of Information to ancient and comparative historical research.
Download or read book Foreign Demand and Local House Prices Evidence from the US written by Mr.Damien Puy and published by International Monetary Fund. This book was released on 2020-02-28 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: We test whether foreign demand matters for local house prices in the US using an identification strategy based on the existence of “home bias abroad” in international real estate markets. Following an extreme political crisis event abroad, a proxy for a strong and exogenous shift in foreign demand, we show that house prices rise disproportionately more in neighbourhoods with a high concentration of population originating from the crisis country. This effect is strong, persistent, and robust to the exclusion of major cities. We also show that areas that were already expensive in the late 1990s have experienced the strongest foreign demand shocks and the biggest drop in affordability between 2000 and 2017. Our findings suggest a non-trivial causal effect of foreign demand shocks on local house prices over the last 20 years, especially in neighbourhoods that were already rather unaffordable for the median household.
Download or read book Architectural Research Addressing Societal Challenges written by Manuel Jorge Rodrigues Couceiro da Costa and published by CRC Press. This book was released on 2019-08-08 with total page 1665 pages. Available in PDF, EPUB and Kindle. Book excerpt: The escalating interdependecy of nations drives global geopolitics to shift ever more quickly. Societies seem unable to control any change that affects their cities, whether positively or negatively. Challenges are global, but solutions need to be implemented locally. How can architectural research contribute to the future of our changing society? How has it contributed in the past? The theme of the 10th EAAE/ARCC International Conference, “Architectural Research Addressing Societal Challenges”, was set to address these questions. This book, Architectural Research Addressing Societal Challenges, includes reviewed papers presented in June 2016, at the 10th EAAE/ARCC International Conference, which was held at the facilities of the Faculty of Architecture of the University of Lisbon. The papers have been further divided into the following five sub-themes: a Changing Society; In Transit – Global Migration; Renaturalization of the City; Emerging Fields of Architectural Practice; and Research on Architectural Education. The EAAE/ARCC International Conference, held under the aegis of the EAAE and of the ARCC, is a conference organized every other year, in collaboration with one of the member schools/ universities of those associations, alternatively in North America or in Europe.
Download or read book Market Distortions when Agents are Better Informed written by Steven D. Levitt and published by . This book was released on 2005 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Agents are often better informed than the clients who hire them and may exploit this informational advantage. Real-estate agents, who know much more about the housing market than the typical homeowner, are one example. Because real estate agents receive only a small share of the incremental profit when a house sells for a higher value, there is an incentive for them to convince their clients to sell their houses too cheaply and too quickly. We test these predictions by comparing home sales in which real estate agents are hired by others to sell a home to instances in which a real estate agent sells his or her own home. In the former case, the agent has distorted incentives; in the latter case, the agent wants to pursue the first-best. Consistent with the theory, we find homes owned by real estate agents sell for about 3.7 percent more than other houses and stay on the market about 9.5 days longer, even after controlling for a wide range of housing characteristics. Situations in which the agent's informational advantage is larger lead to even greater distortions"--National Bureau of Economic Research web site.
Download or read book Architectural Research Addressing Societal Challenges Volume 1 written by Manuel Jorge Rodrigues Couceiro da Costa and published by CRC Press. This book was released on 2017-09-19 with total page 1320 pages. Available in PDF, EPUB and Kindle. Book excerpt: The EAAE/ARCC International Conference, held under the aegis of the EAAE (European Association for Architectural Education) and of the ARCC (Architectural Research Centers Consortium), is a conference organized every other year, in collaboration with one of the member schools / universities of those associations, alternatively in North America or in Europe. The EAAE/ARCC Conferences began at the North Carolina State University College of Design, Raleigh with a conference on Research in Design Education (1998); followed by conferences in Paris (2000), Montreal (2002), Dublin (2004), Philadelphia (2006), Copenhagen (2008), Washington (2010), Milan (2012) and Honolulu (2014). The conference discussions focus on research experiences in the field of architecture and architectural education, providing a critical forum for the dissemination and engagement of current ideas from around the world.
Download or read book Interests and Behaviours of Real Estate Market Actors in Commercial Property Valuation written by Alina Nichiforeanu and published by Routledge. This book was released on 2020-07-26 with total page 121 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book is a theory-led conceptual account of the Principal-Agent problem and related concepts of Behavioural Real Estate economics, a decade after the real estate crisis of 2008. Data from 52 qualitative interviews undertaken with appraisers, real estate brokers, and property owners is used to argue that the reality is more nuanced and influenced by the interests of the different real estate market actors. The book provides a sketch of the relationship dynamics between real estate investors and service providers in the markets of Austria and Central and Eastern Europe. While the investors manage real estate portfolios and have to deal with particular legal systems, regulations, and norms, they often appoint service providers who have a comprehensive understanding of the local context. This work aims to highlight that this relationship between the real estate market actors creates an information asymmetry that may constitute the basis of conflicts of interest as well as Principal-Agent problems. Furthermore, the work underlines that the services provided by appraisers and real estate brokers to investors may strongly influence the profit the investor can generate from a transaction. It could be therefore inferred that the investor inclines towards a certain type of result from a service provider over the others. The present research has revealed that the investors are guided by certain interests and undertake to steer the service providers in a favoured direction. This book is essential reading for anyone interested in the nuances of Behavioural Economics and real estate.
Download or read book Knowledge written by Marian Adolf and published by Routledge. This book was released on 2016-09-22 with total page 293 pages. Available in PDF, EPUB and Kindle. Book excerpt: As we move through our modern world, the phenomenon we call knowledge is always involved. Whether we talk of know-how, technology, innovation, politics or education, it is the concept of knowledge that ties them all together. But despite its ubiquity as a modern trope we seldom encounter knowledge in itself. How is it produced, where does it reside, and who owns it? Is knowledge always beneficial, will we know all there is to know at some point in the future, and does knowledge really equal power? This book pursues an original approach to this concept that seems to define so many aspects of modern societies. It explores the topic from a distinctly sociological perspective, and traces the many ways that knowledge is woven into the very fabric of modern society.
Download or read book Making Our Neighborhoods Making Our Selves written by George C. Galster and published by University of Chicago Press. This book was released on 2024-01-19 with total page 414 pages. Available in PDF, EPUB and Kindle. Book excerpt: Drawing on economics, sociology, geography, and psychology, Galster delivers a clear-sighted explanation of what neighborhoods are, how they come to be—and what they should be. Urban theorists have tried for decades to define exactly what a neighborhood is. But behind that daunting existential question lies a much murkier problem: never mind how you define them—how do you make neighborhoods productive and fair for their residents? In Making Our Neighborhoods, Making Our Selves, George C. Galster delves deep into the question of whether American neighborhoods are as efficient and equitable as they could be—socially, financially, and emotionally—and, if not, what we can do to change that. Galster aims to redefine the relationship between places and people, promoting specific policies that reduce inequalities in housing markets and beyond.
Download or read book Three Essays on Asymmetric Information in Real Estate Markets written by Jonathan Alan Wiley and published by . This book was released on 2006 with total page 89 pages. Available in PDF, EPUB and Kindle. Book excerpt:
