| The Journal of Real Estate Finance and Economics | |
| Volume 23, Issue 1, Article 3 (Abstract) | |
| Title: | A Present Value Model of Real Estate with Inter-Neighborhood Dependency of Incomes |
| Author: | Hajime Takatsuka and Yoichiro Higuchi |
| Abstract: | In this paper, we build a simple present value model in order to give the basis for an income capitalization appraisal method considering inter-neighborhood dependency of net operating incomes. We also show the Maximum Likelihood estimation method for the model in a cross-sectional situation and apply them to the residential land market in Tokyo Metropolitan Area in the period 1986-98. The results partly provide realistic estimates of the parameters and show the applicability of our model. |
| Keywords: | present value model, inter-neighborhood dependency, NOI stream, spatial econometrics, SARMA |