Real Estate Returns and Inflation
The ability of assets to protect an investor from purchasing power risk due to inflation has received a good deal of attention in the literature recently. The focus of much of this research has been on the properties of common stocks as inflation hedges. Bodie [1976] finds that the real return on equity is negatively related to both anticipated and unanticipated inflation; a similar result is obtained by Fama and Schwert [1977]. Bernard and Frecka [1983] examine individual common stock returns and find that the majority exhibit this negative relationship. This paper uses similar logic to examine the ability of a well-diversified portfolio of real estate to hedge against anticipated and unanticipated inflation. Copyright American Real Estate and Urban Economics Association.
Year of publication: |
1987
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Authors: | Hartzell, David ; Hekman, John S. ; Miles, Mike E. |
Published in: |
Real Estate Economics. - American Real Estate and Urban Economics Association - AREUEA. - Vol. 15.1987, 1, p. 617-637
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Publisher: |
American Real Estate and Urban Economics Association - AREUEA |
Saved in:
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