Intrinsic Cycles of Land Price: A Simple Model

Charles Ka Yui Leung () and Nan-Kuang Chen ()
Additional contact information
Nan-Kuang Chen: Department of Economics, National Taiwan University, 21 Shuchow Road, Taipei 10021, Taiwan

Journal of Real Estate Research, 2006, vol. 28, issue 3, pages 293-320

Abstract: The cyclicality and volatility of property prices have been extensively documented. Many explanations have been proposed. This paper builds a simple dynamic general equilibrium model in which these often cited channels are assumed away. Instead, the role of intertemporal elasticity of substitution is highlighted. In this model, the land price can exhibit price cycles. Moreover, the land price always fluctuates more than the aggregate output. The welfare of different cohorts depends crucially on the land price at the period they were born. The implications of these results are discussed.

JEL-codes: L85 (search for similar items in EconPapers)
Date: 2006
View list of references View citations in EconPapers

Downloads: (external link)
http://aux.zicklin.baruch.cuny.edu/jrer/papers/pdf/past/vol28n03/05.293_320.pdf Full text (application/pdf)

Related works:
Working Paper: Intrinsic Cycles of Land Price: A Simple Model (2005)
Working Paper: Intrinsic Cycles of Land Price: A Simple Model (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:jre:issued:v:28:n:3:2006:p:293-320

Ordering information: This journal article can be ordered from
Diane Quarles American Real Estate Society Manager of Member Services Clemson University Box 341323 Clemson, SC 29634-1323
http://aux.zicklin.b ... u/jrer/about/get.htm

Access Statistics for this article

Journal of Real Estate Research is edited by Dr. Ko Wang

More articles in Journal of Real Estate Research from American Real Estate Society
Address: American Real Estate Society Clemson University School of Business & Behavioral Science Department of Finance 401 Sirrine Hall Clemson, SC 29634-1323
Series data maintained by JRER Graduate Assistant/Webmaster ().