THE TIME VALUE OF HOUSING: HISTORICAL EVIDENCE ON DISCOUNT RATES

• 成果类型: Article
• 署名作者: Bracke, Philippe; Pinchbeck, Edward W.; Wyatt, James
• 署名单位: Bank of England; University of London; London School Economics & Political Science
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.1111/ecoj.12501
• 发表日期: 2018
• 页码: 1820-1843
• 关键词: of-climate-change; TENURE; prices; MODEL

摘要

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.