Theoretical Constraints on the Price-Rent Ratio and Other Insights from a New Real Estate Model
Abstract
I develop a model of the real estate market with rational informed individuals who are either liquid or illiquid. The model shows bounds on the price-rent ratio and dispels some common real estate myths. Suggestions are given for empirical tests of the models implications.
Suggested Citation
Richard H. Serlin. 2006. "Theoretical Constraints on the Price-Rent Ratio and Other Insights from a New Real Estate Model" The Selected Works of Richard H. Serlin
Available at: http://works.bepress.com/richard_serlin/5
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