Confronting Information Asymmetries: Evidence from Real Estate Markets

Mark J. Garmaise and Tobias J. Moskowitz

No 8877, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: 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.

JEL-codes: G2 G3 (search for similar items in EconPapers)
Date: 2002-04
Note: AP CF
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published as Garmaise, Mark J. and Tobias J. Moskowitz. "Confronting Information Asymmetries: Evidence From Real Estate Markets," Review of Financial Studies, 2004, v17(2,Summer), 405-437.

Downloads: (external link)
http://www.nber.org/papers/w8877.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:nbr:nberwo:8877

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w8877

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().