Evidence on rationality in commercial property markets
Subtitle: an interpretation and critique
By: Patric H. Hendershott, Robert J. Hendershott, Bryan D. MacGregor.
Contributors: Hendershott, Robert.; MacGregor, Bryan D.; National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 11329; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 11329.
Publisher: National Bureau of Economic Research
Published: 2005
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: Commercial real estate -- Prices -- Mathematical models.; Assets (Accounting) -- Prices -- Mathematical models.
Description: "Periodic sharp sustained increases and then reversals in asset prices lead many to posit irrational price bubbles.  The general case for irrationality is that real asset prices simply have moved too much given the future real cash flows the assets are reasonably likely to produce.  A corollary for property is that observed mean reversion in real cash flows is not reflected in investor valuations, resulting in asset values being too high when real cash flows are high and vice versa.  In this paper we interpret, critique and extend existing analyses of movements in real commercial property prices during the late 1980s and early 1990s"--National Bureau of Economic Research web site.
Notes: Includes bibliographical references.
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Mode of access: World Wide Web.