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The Journal of Real Estate Finance and Economics

Erschienen in:

01.02.2009

Irreversibility, Uncertainty and Housing Investment

verfasst von: William Miles

Erschienen in: The Journal of Real Estate Finance and Economics | Ausgabe 2/2009

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Abstract

Housing represents a form of “irreversible” investment. Theoretically, increased uncertainty should lower housing investment. Empirically, finding a proxy for uncertainty has proven problematic. Some recent papers have investigated the effect of uncertainty on real estate investment, with varying proxies for uncertainty and mixed results. This paper employs a technique used in modern macroeconomic studies, the Generalized Autoregressive Conditional Heteroskedasticity-in-Mean model, which has been shown to correspond as closely as any known measure to theoretical concepts of uncertainty. Results indicate that uncertainty indeed has a negative impact on housing starts.

Vorheriger Artikel Do Repeated Wildfires Change Homebuyers’ Demand for Homes in High-Risk Areas? A Hedonic Analysis of the Short and Long-Term Effects of Repeated Wildfires on House Prices in Southern California

Nächster Artikel Marketing Period Risk in a Portfolio Context: Comment and Extension

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Titel: Irreversibility, Uncertainty and Housing Investment
verfasst von: William Miles
Publikationsdatum: 01.02.2009
Verlag: Springer US
Erschienen in: The Journal of Real Estate Finance and Economics / Ausgabe 2/2009
Print ISSN: 0895-5638
Elektronische ISSN: 1573-045X
DOI: https://doi.org/10.1007/s11146-007-9087-x

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