This paper takes an integrated approach to examining the link between stock prices, investment, and capital structure decisions using data on a unique type of firm: Real Estate Investment Trusts (REITs). By using REITs, we are able to obtain high quality estimates of the net asset value of the...

Many researchers have noted that house prices reflect the capitalized value of local public services and amenities on house prices, but few empirical papers link the extent of house price capitalization to local spending decisions. In this paper we show that the causality indeed runs in both...