Price Volatility of Commercial and Residential Property
Posted: 22 Oct 1999
This paper studies the relative volatility of commercial and residential property prices. Empirical evidence of commercial property prices being more volatile than that of residential property is presented. Models are built a la Lucas. Theoretical statements are derived to show the exact conditions under which the observations arise. The cases of fixed supply and flexible supply are considered separately.
JEL Classification: R21, R31
Suggested Citation: Suggested Citation