Expropriation risk and housing prices: Evidence from an emerging market |
| |
Authors: | Víctor Contreras Urbi Garay Miguel Angel Santos Cosme Betancourt |
| |
Institution: | 1. IESA, Av. IESA, Edif. IESA, San Bernardino, 1010 Caracas, Venezuela;2. Facultad de Administración, Universidad de los Andes, Calle 21 No. 1-20, Bogotá, Colombia |
| |
Abstract: | This paper examines the microeconomic determinants of residential real estate prices in Caracas, Venezuela, using a private database containing 17,526 transactions from 2008 to 2009. The particular institutional characteristics of many countries in Latin America, and Venezuela in particular, where land invasions and expropriations (with only partial compensation) have been common threats to property owners, provide us with an opportunity to test the effects of these risks on housing prices using a unique database. The effect of these risks on property prices is negative and significant. To our knowledge, this is the first attempt to quantify these impacts in the Hedonic pricing literature applied to real estate. Size, the number of parking spaces, the age of the property, the incidence of crime, and the average income in the neighborhood are significant determinants of prices. Finally, this paper analyzes the microeconomic determinants of housing prices at the municipal level. |
| |
Keywords: | Real estate prices Hedonic pricing model Expropriations Venezuela |
本文献已被 ScienceDirect 等数据库收录! |
|