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Spatial Asset Pricing: A First Step
Author(s) -
OrtaloMagné François,
Prat Andrea
Publication year - 2016
Publication title -
economica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.532
H-Index - 65
eISSN - 1468-0335
pISSN - 0013-0427
DOI - 10.1111/ecca.12171
Subject(s) - economic rent , portfolio , capital asset pricing model , asset (computer security) , consumption based capital asset pricing model , economics , space (punctuation) , capital asset , financial economics , asset allocation , finance , microeconomics , business , computer science , computer security , operating system
People choose where to live and how much to invest in housing and financial assets, including whether to buy or to rent their home. Traditionally, the first decision has been the domain of spatial economics, while the second has been analysed in finance. Spatial asset pricing combines the two sets of decisions in a tractable dynamic portfolio choice problem, which leads to an array of predictions on the geographical allocation of human capital, households portfolio over space and time, housing rents, housing and asset prices.