Herding Behavior among Residential Developers

SeungHan Ro (), Paul Gallimore (), Sherwood Clements () and Gang-Zhi Fan ()
Additional contact information
SeungHan Ro: Konkuk University
Paul Gallimore: University of Reading
Sherwood Clements: University of Alabama
Gang-Zhi Fan: Guangzhou University

The Journal of Real Estate Finance and Economics, 2019, vol. 59, issue 2, No 6, 272-294

Abstract: Abstract We investigate whether US real estate developers display herding in their building permit seeking behavior. We measure herding over the period 1988 through 2011 by applying to permit issuances measures previously used in studies of stock herding. We find evidence of herding at levels comparable to those found in studies involving common-stock trading. Developer herding is also stronger in up markets, than in down markets. This is consistent with up market buoyancy constraining the availability of reliable, independent information, which reinforces the tendency to follow the behavior of others.

Keywords: Herding; Building permit; Residential development (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://link.springer.com/10.1007/s11146-018-9675-y Abstract (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: https://EconPapers.repec.org/RePEc:kap:jrefec:v:59:y:2019:i:2:d:10.1007_s11146-018-9675-y

Ordering information: This journal article can be ordered from
http://www.springer. ... ce/journal/11146/PS2

DOI: 10.1007/s11146-018-9675-y

Access Statistics for this article

The Journal of Real Estate Finance and Economics is currently 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
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().