[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/taf/jpropr/v22y2005i2-3p63-96.html
   My bibliography  Save this article

A Building Cycle Model for an Imperfect World

Author

Listed:
  • Richard Barras
Abstract
A model of the building cycle is presented, expressed in terms of endogenous fluctuations in development activity, vacancy and rents around an equilibrium growth path. The dynamic behaviour of the model is determined by lags in three adjustment processes: the occupier response to changes in rents, the development response to demand changes mediated through a rent adjustment process, and the construction delay between starts and completions. The frequency and severity of the cycle depend upon the values of five key parameters including the construction lag and the transmission coefficient linking vacancy to development starts. The model has been fitted to data for the City of London office market, yielding estimates for key parameters that are consistent with its observed cyclical behaviour.

Suggested Citation

  • Richard Barras, 2005. "A Building Cycle Model for an Imperfect World," Journal of Property Research, Taylor & Francis Journals, vol. 22(2-3), pages 63-96, October.
    • Handle: RePEc:taf:jpropr:v:22:y:2005:i:2-3:p:63-96
    DOI: 10.1080/09599910500453905
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/09599910500453905
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/09599910500453905?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Krzysztof Olszewski & Jacek Łaszek & Joanna Waszczuk, 2023. "An unequal reaction of housing starts to house prices in different regions of Poland," Bank i Kredyt, Narodowy Bank Polski, vol. 54(4), pages 437-458.
    2. Dieci, Roberto & Westerhoff, Frank, 2016. "Heterogeneous expectations, boom-bust housing cycles, and supply conditions: A nonlinear economic dynamics approach," Journal of Economic Dynamics and Control, Elsevier, vol. 71(C), pages 21-44.
    3. Patric Hendershott & Colin Lizieri & Bryan MacGregor, 2008. "Asymmetric Space Market Adjustment in the London Office Market," Real Estate & Planning Working Papers rep-wp2008-07, Henley Business School, University of Reading.
    4. Yun-Ling Wu & Cheng-Huang Tung & Chun-Chang Lee, 2017. "The Power of a Leading Indicators Fluctuation Trend for Forecasting Taiwans Real Estate Business Cycle: An Application of a Hidden Markov Model," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 7(1), pages 81-98, January.
    5. Franz Fuerst & Anna-Maija Grandy, "undated". ""Oft Expectation Fails": A Time-Series Analysis of Construction Starts in the London Office Market," Real Estate & Planning Working Papers rep-wp2010-13, Henley Business School, University of Reading.
    6. Patric Hendershott & Colin Lizieri & Bryan MacGregor, 2010. "Asymmetric Adjustment in the City of London Office Market," The Journal of Real Estate Finance and Economics, Springer, vol. 41(1), pages 80-101, July.
    7. Yuqing Hu & Piyush Tiwari, 2021. "Examining the Macroeconomic Determinants of Property Cycles in Australia," International Real Estate Review, Global Social Science Institute, vol. 24(2), pages 293-322.
    8. Dieci, Roberto & Westerhoff, Frank, 2015. "Heterogeneous expectations, boom-bust housing cycles, and supply conditions: A nonlinear dynamics approach," BERG Working Paper Series 99, Bamberg University, Bamberg Economic Research Group.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jpropr:v:22:y:2005:i:2-3:p:63-96. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RJPR20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.