Speculating on Home Improvements

• المؤلفون الرئيسيون: CHOI, Hyun Soo, HONG, Harrison, SCHEINKMAN, Jose
• التنسيق: text
• اللغة: English
• منشور في: Institutional Knowledge at Singapore Management University 2014
• الموضوعات: Home improvements; Real estate; Remodeling; Speculation; Finance and Financial Management
• الوصول للمادة أونلاين: https://ink.library.smu.edu.sg/lkcsb_research/3281; https://ink.library.smu.edu.sg/context/lkcsb_research/article/4280/viewcontent/Choi_SpeculatingHomeImprovements.pdf

We develop a speculation-based theory of home improvements. Housing services are produced from a mix of land and structures. Homeowners have an option to increase their structures (i.e. make improvements) holding fixed their land. Speculative improvements arise because overconfident homeowners mista...