Uses of Equilibrium Models in Real Estate Research

Patric Hendershott

Research in Financial Economics from Ohio State University

Abstract: Equilibrium analysis is a valuable tool in real estate investment research. In this survey, I show how equilibrium models have been used to estimate the required risk premium for different classes of real estate, to explain housing prices and rents, and to determine investment rental market adjustment and valuation (as well as to predict future rent, price and value developments). Equilibrium analysis, combined with option theory, has also increased our understanding of differences in coupon/rental rates on loans/leases with different contract provisions (or our understanding of differences in values of contracts with different provisions but the same coupon/rental rates). Because the work on leases has lagged that on loans or mortgages, application of the mortgage research methodology to leases is an especially fertile area for research

New Economics Papers: this item is included in nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.cob.ohio-state.edu/~fin/journal/dice/papers/1996/96-12.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.cob.ohio-state.edu/~fin/journal/dice/papers/1996/96-12.pdf [301 Moved Permanently]--> https://www.cob.ohio-state.edu/~fin/journal/dice/papers/1996/96-12.pdf [301 Moved Permanently]--> https://fisher.osu.edu/~fin/journal/dice/papers/1996/96-12.pdf [301 Moved Permanently]--> http://fisher.osu.edu/people/fin/journal/dice/papers/1996 [301 Moved Permanently]--> https://fisher.osu.edu/people/fin/journal/dice/papers/1996)

Related works:
Journal Article: Uses of equilibrium models in real estate research (1997)
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:wop:ohsrfe:9612

Access Statistics for this paper

More papers in Research in Financial Economics from Ohio State University Contact information at EDIRC.
Bibliographic data for series maintained by Thomas Krichel ().