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Confronting Information Asymmetries: Evidence from Real Estate Markets / Mark J. Garmaise, Tobias J. Moskowitz.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Garmaise, Mark J.
Contributor:
National Bureau of Economic Research.
Moskowitz, Tobias J.
Series:
Working Paper Series (National Bureau of Economic Research) no. w8877.
NBER working paper series no. w8877
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Other Title:
Confronting Information Asymmetries
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2002.
Summary:
This paper studies the role of asymmetric information in commercial real estate markets in the U.S. We propose a novel and exogenous measure of information based on the quality of property tax assessments in different regions. Employing direct and indirect information variables, we find strong evidence that information considerations are significant in this market. We show that market participants resolve information asymmetries by purchasing nearby properties, trading properties with long income histories, and avoiding transactions with informed professional brokers. The evidence that the choice of financing is used to address information concerns is mixed and weak.
Notes:
Print version record
April 2002.

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