Does all firms’ productive investment benefit from real estate price increases?

Denis Fougere, Rémy Lecat and Simon Ray

Rue de la Banque, 2018, issue 69

Abstract: An increase in real estate prices both raises the value of pledgeable assets and lowers the return on investment due to the increase in the cost of inputs. These two channels draw productive investment in opposite directions. Using a large French database, this Rue de la Banque shows that prices have heterogeneous effects on productive investment depending on the firms’ real estate holdings. Older, less productive firms benefit most from increases in real estate prices.

Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://publications.banque-france.fr/sites/defaul ... 8356_rdb69_en_v2.pdf (application/pdf)

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: https://EconPapers.repec.org/RePEc:bfr:rueban:2018:69

Access Statistics for this article

More articles in Rue de la Banque from Banque de France Banque de France 31 Rue Croix des Petits Champs LABOLOG - 49-1404 75049 PARIS. Contact information at EDIRC.
Bibliographic data for series maintained by Michael brassart ().