What Drives the Property Price-Trading Volume Correlation? Evidence from a Commercial Real Estate Market

Charles Ka Yui Leung () and Dandan Feng

The Journal of Real Estate Finance and Economics, 2005, vol. 31, issue 2, pages 241-255

Abstract: The significant price-trading volume correlation found in the residential property market presents a challenge to the rational expectation hypothesis. Existing theories account for this fact with either capital market imperfection (down-payment effect or loss-aversion consideration) or imperfect information (search theoretic models). This paper employs data from a commercial real estate market, which face a different degree of severity of capital market constraint than the residential market, and thus provide an indirect but effective test for alternative theories. Policy implications are also discussed. Copyright Springer Science + Business Media, Inc. 2005

Keywords: trading volume; housing price; search; capital market imperfection; different degree of severity (search for similar items in EconPapers)
Date: 2005
View list of references View citations in EconPapers

Downloads: (external link)
http://hdl.handle.net/10.1007/s11146-005-1374-9 (text/html)
Access to full text is restricted to subscribers.

Related works:
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:kap:jrefec:v:31:y:2005:i:2:p:241-255

Access Statistics for this article

The Journal of Real Estate Finance and Economics is edited by Steven R. Grenadier, James B. Kau and C.F. Sirmans

More articles in The Journal of Real Estate Finance and Economics from Springer
Series data maintained by Christopher F. Baum ().