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dc.contributorVirginia Tech
dc.contributor.authorRosenthal, S. S.
dc.date.accessioned2014-02-21T14:20:18Z
dc.date.available2014-02-21T14:20:18Z
dc.date.issued1999-05
dc.identifier.citationRosenthal, SS. "Residential buildings and the cost of construction: new evidence on the efficiency of the housing market," Review of Economics and Statistics 1999 Vol. 81 No. 2, 288-302 doi: 10.1162/003465399558085
dc.identifier.issn0034-6535
dc.identifier.urihttp://hdl.handle.net/10919/25519
dc.description.abstractPresent value studies of asset market efficiency are controversial because they compare asset prices to unobserved discounted streams of future rents. As an alternative, if housing markets are efficient, then the price of residential capital or buildings should satisfy the following two conditions: (i) deviations between new building prices and construction costs should disappear faster than construction lags and have no effect on construction, and (ii) temporary building price shocks should dissipate at a similar rate for different vintage buildings. Results from an error-correction model support both hypotheses for single-family housing in Vancouver, British Columbia. This implies that the implicit market for residential buildings is efficient and that any inefficiencies in the housing market must lie in the market for land itself.
dc.description.sponsorshipReal Estate Institute of British Columbia
dc.description.sponsorshipSocial Science and Research Council of Canada (SSHRC)
dc.language.isoen_US
dc.publisherMIT Press
dc.subjecturban-growth
dc.subjectstock-prices
dc.subjectland prices
dc.subjectredevelopment
dc.subjectbubbles
dc.subjectcointegration
dc.subjectvectors
dc.subjectmodels
dc.titleResidential buildings and the cost of construction: new evidence on the efficiency of the housing market
dc.typeArticle
dc.identifier.urlhttp://www.mitpressjournals.org/doi/pdf/10.1162/003465399558085
dc.date.accessed2014-02-05
dc.title.serialReview of Economics and Statistics
dc.identifier.doihttps://doi.org/10.1162/003465399558085


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