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Do investors behave myopically whendeciding to invest in office buildings? Anempirical study using Tobins Q.
KTH, Superseded Departments, Infrastructure.
(English)Manuscript (preprint) (Other academic)
Abstract [en]

The purpose of this paper is to build a regression model using the investment rule “Tobins Q”(TQ). TQ is the quota of the market price and the replacement cost of a good. TQ indicatewhen there is potential in the market to build and sell office buildings. We have used data formarket price, construction cost and production for a period of 22 years for a suburban officemarket in Stockholm. TQ has been regressed on newly produced offices with different timelags. The result indicates that, with our model, we can with TQ decision rule explain theproduction of office space better with a three-year lag on TQ than with no lag. The resultmight indicate that investors have myopic view.

Keyword [en]
TQ, myopic behaviour
National Category
Engineering and Technology
URN: urn:nbn:se:kth:diva-26505OAI: diva2:372437
QC 20101125Available from: 2010-11-25 Created: 2010-11-25 Last updated: 2010-11-25Bibliographically approved
In thesis
1. Overbuilding in office markets: are behavioural aspects important?
Open this publication in new window or tab >>Overbuilding in office markets: are behavioural aspects important?
2005 (English)Licentiate thesis, comprehensive summary (Other academic)
Place, publisher, year, edition, pages
Stockholm: KTH, 2005. 3 p.
Trita-BFE, ISSN 1104-4101 ; 05:69
National Category
Social Sciences
urn:nbn:se:kth:diva-4079 (URN)91-975358-7-7 (ISBN)
QC 20101125Available from: 2006-08-17 Created: 2006-08-17 Last updated: 2010-11-25Bibliographically approved

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