An Analysis of Office Market Rents: Parameter Constancy and Unobservable Variables
This paper reexamines variations in office building rents using data for a six-year period in a medium-sized city. Previous literature has relied on estimates using OLS estimation of standard fixed-effects models. We test for structural shifts and parameter constancy using random effects on heteroscedastic-autoregressive models and we find that structural shifts occur. Overall, the rent adjustment process does not remain unchanged across different time periods or submarkets.
Volume (Year): 8 (1993)
Issue (Month): 4 ()
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