What drives the property price-trading volume correlation? Evidence from a commercial real estate market
|Journal / Publication||Journal of Real Estate Finance and Economics|
|Publication status||Published - Sep 2005|
|Link to Scopus||https://www.scopus.com/record/display.uri?eid=2-s2.0-23844548727&origin=recordpage|
The significant price-trading volume correlation found in the residential property market presents a challenge to the rational expectation hypothesis. Existing theories account for this fact with either capital market imperfection (down-payment effect or loss-aversion consideration) or imperfect information (search theoretic models). This paper employs data from a commercial real estate market, which face a different degree of severity of capital market constraint than the residential market, and thus provide an indirect but effective test for alternative theories. Policy implications are also discussed. © 2005 Springer Science + Business Media, Inc.
- Capital market imperfection, Different degree of severity, Housing price, Search, Trading volume
Journal of Real Estate Finance and Economics, Vol. 31, No. 2, 09.2005, p. 241-255.
Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
Leung, CKY & Feng, D 2005, 'What drives the property price-trading volume correlation? Evidence from a commercial real estate market', Journal of Real Estate Finance and Economics, vol. 31, no. 2, pp. 241-255. https://doi.org/10.1007/s11146-005-1374-9