The Time Value of Housing
Historical Evidence on Discount Rates
Bibliographic Data
| ID | 9711591 |
|---|---|
| Authors | Philippe Bracke (Bank of England, corresponding author), Edward W Pinchbeck (0000-0002-5638-3923, London School of Economics and Spatial Economics Research Centre), James Wyatt (Parthenia Research and Royal Institution of Chartered Surveyors), James K Wyatt (0000-0001-6454-1736, Royal Institution of Chartered Surveyors) |
| Year | 2018 |
| Volume | 128 |
| Issue | 613 |
| Pages | 1820-1843 |
| Publication date | 2018-08-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 0013-0133 • E-ISSN: 1468-0297 |
| Publisher | Oxford University Press (OUP) (PUBLISHER) |
| DOI | 10.1111/ecoj.12501 |
| OpenAlex | W2531703077 |
| Language | EN |
| Citations received | 6 |
| References cited | 19 |
Most London housing transactions involve trading long leases of varying lengths. We exploit this to estimate the time value of housing – the relationship between the price of a property and the term of ownership – over a 100 years and derive implied discount rates. For our empirical analysis, we compile a unique historical data set (1987–92) to abstract from the right to extend leases currently enjoyed by tenants. Across a variety of specifications and samples, we find that leasehold prices are consistent with a time declining schedule and low long-term discount rates in housing markets
Econometrics · Economics · Exploit · Financial economics · Leasehold estate · Microeconomics · Residential property · Schedule · Statistics · Term (time · Value (mathematics · Computer Science · Economic and Environmental Valuation · Fiscal Policy and Economic Growth · Housing Market and Economics · Mathematics
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| Unique citing works | 6 |
|---|---|
| Citations per year | 0,86 |
| Citation span | 2019 - 2023 (5) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 6 |