Apartment Security: A Note on Gated Access and Rental Rates
This study empirically examines the dynamics of the private industrial market in Singapore using a Vector Error Correction Model (VECM), which is derived based on the theoretical framework of an extended accelerator investment model. The GDP in manufacturing sector (LMGDP) and the composite leading indicator (LCLI) were two unrestricted long-run forcing variables included in the VECM for the industrial space demand, together with a pre-determined error correction mechanism (ecm) and other determinants. The results of the VECM estimation showed negative effects of the changes in the manufacturing GDP (LMGDP) at different lags on the private industrial demand (LPRD). Three possible reasons are hypothesized for the negative manufacturing outputs and industrial space demand relationship. First, firms substitute space for other factors of production when the demand for their output increases. Second, firms take up more space than that required for the existing scale of production and the excess space can be converted to meet the production needs for the short-term surge in the outputs. A possible switch of demand from the private to the public industrial markets during a period of strong output growth may be the third contributory factor. In the generalized forecast error variance decomposition analysis, one-standard deviation shocks to the manufacturing GDP (LMGDP) was found to account for an average 67.10% of the variances of LPRD. However, in shorter terms of less than 15-period, the industrial demand own shocks appeared to be the most important determinant of the variation in industrial real estate demand. It was also found that the most volatile impulse responses from the industrial demand variance.
Volume (Year): 25 (2003)
Issue (Month): 3 ()
|Contact details of provider:|| Postal: American Real Estate Society Clemson University School of Business & Behavioral Science Department of Finance 401 Sirrine Hall Clemson, SC 29634-1323|
Web page: http://www.aresnet.org/
|Order Information:|| Postal: Diane Quarles American Real Estate Society Manager of Member Services Clemson University Box 341323 Clemson, SC 29634-1323|
Web: http://pages.jh.edu/jrer/about/get.htm Email:
When requesting a correction, please mention this item's handle: RePEc:jre:issued:v:25:n:3:2003:p:301-324. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (JRER Graduate Assistant/Webmaster)
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.