| Description |
1 online resource (xxviii, 477 pages) : illustrations |
| Series |
Routledge advanced texts in economics and finance ; 20 |
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Routledge advanced texts in economics and finance ; 20.
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| Contents |
880-01 Note continued: 10.10. Economic rent from land -- 10.11. Appendix: derivation of bid-rent curve and rend-gradient -- Summary of main points -- Review questions and exercises -- 11. Housing market bubbles -- Learning outcomes -- 11.1. Asset-price bubbles -- 11.1.1. Causes of bubbles -- and bursts -- 11.1.2. The significance of credit -- 11.2. Why housing market bubbles matter a lot -- 11.3. The US house-price bubble of 2006 -- and its burst -- 11.4. Planning restrictions and bubbles -- 11.5. Conventional signs of a bubble -- 11.6. Consequences of a house-price bubble burst -- 11.7. Can asset-price bubbles be avoided? -- 11.7.1. Credit is key -- 11.7.2. ̀Automatic stabilizers' as ̀bubble-stoppers' -- 11.7.3. An example of an ̀automatic stabilizer' RE tax -- 11.8. Expected return, RRR, and house-price volatility -- 11.8.1. ̀Fundamental' drivers and market ̀actors' -- 11.8.2. Market ̀actors' behaviour -- 11.8.3. A model of housing market volatility -- 11.8.4. A model of housing market volatility (cont'd) -- 11.8.5. Concluding remarks -- Summary of main points -- Review questions and exercises -- 12. RE performance and price measures -- Learning outcomes -- 12.1. Value versus price versus performance -- 12.2. Main RE performance measures -- 12.2.1. Money-weighted versus time-weighted performance measures -- 12.2.2. A RE application -- 12.3. RE price indices: prologue -- 12.3.1. Price indices versus prices -- 12.4. The hedonic method -- 12.4.1. A hedonics example -- 12.4.2. A semi-logarithmic functional form -- 12.4.3. Varying the weights -- 12.4.4. The functional form problem in hedonics -- 12.5. The repeat-sales method -- 12.6. The mix-adjustment method -- 12.7. The SPAR method -- 12.8. Who uses what HPI -- 12.8.1. Automated Valuation Models -- 12.9. HPI comparison -- 12.9.1. Hedonic indices -- 12.9.2. Repeat-sales indices -- 12.9.3. Mix-adjustment, or stratification, indices -- 12.9.4. SPAR indices -- 12.10. Appendix: hedonics theory -- Summary of main points -- Review questions and exercises |
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880-01/(S Machine generated contents note: 1. Real estate (RE): an overview of the sector -- Learning outcomes -- 1.1. Definition of real estate (RE) -- 1.2. RE subsectors (or submarkets) -- 1.3. The location factor -- 1.4. Location and ̀authentic' versus ̀derived' demand for RE -- 1.5. Other characteristics of RE -- and wider interactions -- 1.6. Why study RE economics-- 2. RE: tools of analysis -- Learning outcomes -- 2.1. Mathematical techniques -- 2.1.1. Differentiation -- 2.1.2. Partial and total differentiation -- 2.1.3. Optimization -- 2.1.4. Optimizing functions of more than one variable -- 2.1.5. Constrained optimization -- 2.1.6. Implicit differentiation -- 2.1.7. The S curve -- 2.2. Economic concepts -- 2.2.1. Elasticity -- 2.2.2. Indifference curves -- 2.2.3. Useful demand and utility functions -- 2.2.4. From Cobb-Douglas utility to Cobb-Douglas demand -- 2.2.5. Income and substitution effects -- 2.2.6. Income and substitution effects: locating the tangency solutions -- 2.2.7. Income and substitution effects in housing -- 2.2.8. Elasticity of substitution (εs) -- 2.2.9. Characteristics theory -- 2.2.10. Isoquants, isocosts, MPP, MRP, and profit maximization -- 2.3. Statistical primer: regression, co-integration, Granger causality -- 2.3.1. Regression -- 2.3.2. Regression and causality -- 2.3.3. Co-integration -- 2.3.4. More on time series -- 2.3.5. A graphical example -- 2.3.6. Granger causality -- 2.3.7. Further reading -- Summary of main points -- Review questions and exercises -- 3. RE in the wider economy -- Learning outcomes -- 3.1. RE in the National Accounts -- 3.2. RE investment and economic growth -- 3.2.1. Multiplier effects -- 3.2.2. A limit to the share of construction in GDP-- 3.2.3. Who pulls whom -- GDP or construction-- 3.3. Determinants of RE investment; Tobin's q -- 3.3.1. Utility-driven investment -- 3.3.2. Tobin's q -- 3.3.3. RE investment as inflation hedge -- 3.3.4. The role of ̀fundamentals' -- 3.3.5. What about non-residential property-- 3.4. The effect of RE prices on the economy -- 3.4.1. The consumption channel -- 3.4.2. The investment channel -- 3.4.3. The financial sector channel -- 3.4.4. The inflation channel -- 3.4.5. The government's fiscal position channel -- 3.5. The housing wealth effect (HWE) -- 3.5.1. The HWE as a home-equity adjustment -- 3.5.2. The HWE as a PILC adjustment -- 3.5.3. The HWE as a consumer-credit adjustment -- 3.5.4. How strong is the HWE effect, then-- 3.6. Homeownership and the labour market -- Summary of main points -- Review questions and exercises -- 4. RE finance: loans, equity withdrawal, and MBSs -- Learning outcomes -- 4.1. Loans, mortgages, and maths -- 4.2. Forward mortgages: basic loan types -- 4.2.1. The interest-and-capital repayment loan -- 4.2.2. The interest-only loan -- 4.2.3. The low-start loan -- 4.2.4. The stabilized loan -- 4.2.5. The select-payment loan -- 4.2.6. The cap-and-collar loan -- 4.2.7. The index-linked loan -- 4.3. Remortgaging and equity withdrawal -- 4.3.1. Variable versus fixed interest rates -- 4.3.2. From prepayment to refinancing -- 4.3.3. Cash-out refinancing -- 4.3.4. Tapping into one's home equity -- 4.4. Reverse (or equity release) mortgages -- 4.4.1. Mechanics of a reverse mortgage -- 4.4.2. A right interest rate for a reverse mortgage-- 4.5. Reverse mortgages in the USA and the UK -- 4.6. Housing finance and homeownership -- 4.7. Mortgage securitization (MS) -- 4.7.1. How MS works -- 4.7.2. Types of MBSs -- 4.7.3. Reasons for MS -- 4.7.4. Effect on RE market -- Summary of main points -- Review questions and exercises -- 5. RE as an investment decision -- Learning outcomes -- 5.1. Definition of commercial RE -- 5.2. The language of the market place -- 5.2.1. Some definitions -- 5.2.2. Investment vehicles -- 5.3. Characteristics of investment in RE -- 5.4. A portfolio approach to RE investment -- 5.4.1. Portfolio basics -- 5.4.2. RE and correlation between assets -- 5.4.3. RE across countries: correlations (A) -- 5.4.4. RE & other asset classes: correlations (B) -- 5.4.5. An application -- 5.5. Property valuation -- 5.5.1. Investment appraisal: NPV and IRR -- 5.5.2. Special cases in property valuation -- 5.5.3. The capitalization rate -- 5.5.4. The cap rate cycle -- 5.5.5. The band-of-investment concept -- 5.6. Physical life and economic life -- 5.7. Property derivatives and options -- Summary of main points -- Review questions and exercises -- 6. Demand for office-retail-industrial space -- Learning outcomes -- 6.1. Demand for office space -- 6.1.1. Vacant space---occupied space -- 6.1.2. Mathematical modelling of the short term -- 6.1.3. Mathematical modelling of the long term -- 6.1.4. A disturbance and re-establishment of equilibrium -- 6.1.5. The office rental cycle and the NVR -- 6.1.6. Determinants of office demand (and supply) -- 6.1.7. How is the NVR estimated-- 6.1.8. Office market analysis -- 6.2. Demand for retail space -- 6.2.1. The geographical frame of reference -- 6.2.2. Methods of finding trade areas: the checklist method -- 6.2.3. Methods of finding trade areas: the analogue method -- 6.2.4. Methods of finding trade areas: multiple regression analysis (MRA) -- 6.2.5. Methods of finding trade areas: gravity modelling -- 6.2.6. Methods of finding trade areas: use of GIS -- 6.3. Demand for industrial space -- Summary of main points -- Review questions and exercises -- 7. Housing demand and supply -- Learning outcomes -- 7.1. Dwelling price versus dwelling rent -- 7.2. Residential demand -- 7.3. Modelling residential demand: a (demanding!) example -- 7.3.1. The De Bruyne-Van Hove model -- 7.4. Adding supply: an extended model -- 7.5. Determinants of housing demand and supply -- 7.6. A practical example of housing ̀demand' calculation -- 7.7. Construction, development, and supply changes -- 7.8. A developer's profit maximization problem -- 7.8.1. Profit-maximization in the face of plaaning constraints -- 7.8.2. The RRR approach to development -- 7.8.3. Profit maximization in the face of a land price -- 7.8.4. More on the negotiation dimension -- 7.9. What price for land-- 7.9.1. The ̀Anglo-American' mode of residential development -- 7.9.2. The ̀Greek' mode of residential development -- 7.9.3. Concluding remarks -- Summary of main points -- Review questions and exercises -- 8. Construction flows and market equilibrium -- Learning outcomes -- 8.1. Capital stock adjustment models (CSAMs) -- 8.2. The DiPasquale -- Wheaton (DiPW) model -- 8.3. Summing up the DiPW model -- 8.4. From the DiPW model to a modified CSAM -- 8.4.1. Example A: linear demand -- 8.4.2. From example A: estimating supply -- 8.4.3. Example B: curvilinear demand -- 8.5. CSAMs and the role of expectations -- 8.5.1. ̀Excessive' response to a price shock -- 8.5.2. ̀Myopic' and ̀rational' expectations -- 8.5.3. Developers' responses to prices in the face of uncertainty -- 8.6. The ̀riddle' of mean reversion -- 8.7. The capitalization factor k in the DiPW model -- 8.8. RE shocks and cycles -- 8.8.1. Question (a): one cycle or many-- 8.8.2. Question (b): origin of the shock -- 8.8.3. Question (c): pro- or counter-cyclical-- 8.8.4. Question (d): short cycles, long swings-- 8.8.5. Question (e): different sectors, different cycles-- 8.8.6. Question (f): cycles and expectations -- 8.9. Appendix: a note on difference equations -- Summary of main points -- Review questions and exercises -- 9. RE taxation -- Learning outcomes -- 9.1. An introduction to taxes and taxation -- 9.1.1. Kinds of taxes -- 9.1.2. Principles of taxation -- 9.2. (In)ability to pay RE taxes -- 9.3. Is it better to tax property or income from it-- 9.4. Property taxes, income taxes, and growth -- 9.5. Are RE taxes capitalized in RE prices-- 9.5.1. Inheritance taxes -- 9.5.2. Tax capitalization and tax incidence -- 9.5.3. Capital-gains taxes -- 9.5.4. Sales taxes -- 9.5.5. (Recurrent) property taxes -- 9.5.6. More on the capitalization issue -- 9.6. Taxation of imputed rental income -- 9.6.1. The ̀imputed rent is income' argument -- 9.6.2. The ̀income redistribution' argument -- 9.6.3. The ̀tenure-neutrality' argument -- 9.6.4. The ̀equal treatment of investments' argument -- 9.6.5. The ̀taxation efficiency' argument -- 9.6.6. Efficiency and preferences -- 9.7. Appendix: incidence calculation of an ad valorem tax -- Summary of main points -- Review questions and exercises -- 10. Land uses, values, and taxation -- Learning outcomes -- 10.1. The land-use pattern in a market economy -- 10.2. Land uses as expressions of urban hierarchies -- 10.3. Land uses outwards from a city's core -- 10.4. A firm's bid-rent curve -- 10.4.1. A constant-revenue firm -- 10.4.2. A variable-revenue, constant-price firm -- 10.4.3. A variable-revenue, variable-price, and variable-quantity firm -- 10.5. A household's bid-price curve -- 10.5.1. A more traditional approach -- 10.6. How bid-curves help create a land-use pattern -- 10.7. A bid-curve for all land uses in an urban area -- 10.8. Land-value taxation (LVT) -- 10.8.1. Preliminary remarks -- 10.8.2. Tax incidence and deadweight loss (DWL) -- 10.9. Critical appraisal of arguments favouring LVT -- 10.9.1. Argument 1 -- 10.9.2. Argument 2 -- 10.9.3. Argument 3 -- 10.9.4. Argument 4 -- 10.9.5. Argument 5 -- 10.9.6. Concluding remarks |
| Summary |
"Real Estate Economics: A Point to Point Handbook introduces the main tools and concepts of real estate (RE) economics. It covers areas such as the relation between RE and the macro-economy, RE finance, investment appraisal, taxation, demand and supply, development, and price estimation. It balances housing economics with commercial property economics, and pays particular attention to the issue of property dynamics and bubbles--something very topical in the aftermath of the US house-price collapse that precipitated the global crisis of 2008. This textbook takes an international approach and introduces the student to the necessary "toolbox" of models required in order to properly understand the mechanics of real estate. It combines theory, technique, real-life cases, and practical examples, so that in the end the student is able to:read and understand the majority of RE papers published in peer-reviewed journals make sense of the RE market (or markets)contribute positively to the preparation of economic analyses of RE assets and markets soon after joining any company or other organization involved in RE investing, appraisal, management, policy, or research. The book should be particularly useful to third-year students of economics who may take up RE or urban economics as an optional course; to postgraduate economics students who want to specialize in RE economics; to graduates of management, business administration, civil engineering, planning, and law, who are interested in RE; and to RE practitioners, and students reading for RE-related professional qualifications"-- Provided by publisher |
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"Real Estate Economics: A Point to Point Handbook introduces the main tools and concepts of real estate (RE) economics. It covers areas such as the relation between RE and the macro-economy, RE finance, investment appraisal, taxation, demand and supply, development, market dynamics and price bubbles, and price estimation. It balances housing economics with commercial property economics, and pays particular attention to the issue of property dynamics and bubbles - something very topical in the aftermath of the US house-price collapse that precipitated the global crisis of 2008. This textbook takes an international approach and introduces the student to the necessary "toolbox" of models required in order to properly understand the mechanics of real estate. It combines theory, technique, real-life cases, and practical examples, so that in the end the student is able to: - read and understand the majority of RE papers published in peer-reviewed journals - make sense of the RE market (or markets) - contribute positively to the preparation of economic analyses of RE assets and markets soon after joining any company or other organization involved in RE investing, appraisal, management, policy, or research. The book should be particularly useful to third-year students of economics who may take up RE or urban economics as an optional course, postgraduate economics students who want to specialize in RE economics, graduates of management, business administration, civil engineering, planning, and law, who are interested in RE; in addition to RE practitioners, and students reading for RE-related professional qualifications"-- Provided by publisher |
| Bibliography |
Includes bibliographical references and index |
| Notes |
English |
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Print version record |
| Subject |
Real estate business.
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Real estate investment.
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Urban economics.
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Commercial real estate.
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Residential real estate.
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BUSINESS & ECONOMICS -- General.
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BUSINESS & ECONOMICS -- Econometrics.
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BUSINESS & ECONOMICS -- Real Estate.
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BUSINESS & ECONOMICS -- Real Estate -- General.
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Commercial real estate
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Real estate business
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Real estate investment
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Residential real estate
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Urban economics
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| Form |
Electronic book
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| LC no. |
2012012458 |
| ISBN |
9780203094648 |
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0203094646 |
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9781136208454 |
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1136208453 |
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9781136208409 |
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1136208402 |
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9781136208447 |
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1136208445 |
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1283972921 |
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9781283972925 |
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