Tag Archives: Real Estate

Very Long-Run Discount Rates

From Stefano Giglio, Matteo Maggiori, Johannes Stroebel: We provide the first direct estimates of how agents trade off immediate costs and un- certain future benefits that occur in the very long run, 100 or more years away. We exploit a … Continue reading

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Tax Benefits to Housing and Inefficiencies in Location and Consumption

From David Albouy and Andrew Hanson: Tax benefits to owner-occupied housing provide incentives for housing consumption, offsetting weaker disincentives of the property tax. These benefits also help counter the penalty federal taxes impose on households who work in productive high-wage … Continue reading

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The Causes and Consequences of House Price Momentum

From Adam Guren: House price changes are positively autocorrelated over two to three years, a phenomenon known as momentum. This paper introduces, empirically grounds, and quantitatively analyzes an amplification mechanism that can generate substantial momentum from small frictions and demonstrates that the … Continue reading

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Arrested Development: Theory and Evidence of Supply-Side Speculation in the Housing Market

From Nathanson and Zwick: This paper incorporates speculation into the standard supply-and-demand framework used to analyze housing booms and busts. Speculation reverses the common intuition that elastic housing supply attenuates housing booms. Housing market frictions make land a more attractive … Continue reading

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A Nation Of Gamblers: Real Estate Speculation And American History

Here’s Ed Glaser on real estate speculation in American History: The great housing convulsion that buffeted America between 2000 and 2010 has historical precedents, from the frontier land boom of the 1790s to the skyscraper craze of the 1920s. But this … Continue reading

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