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Research Seminars & Workshops @ IRES


Associate Professor Jiro Yoshida

Department of Risk Management, Penn State Smeal College of Business


Structure Depreciation and the Production of Real Estate Services


Date:

27 June 2016 (Monday)

Time:

3.30pm - 5.00pm

Venue:

RMI Executive Seminar Room, 21 Heng Mui Keng Terrace, I3 Building, Level 4

Chair:

Associate Professor Sing Tien Foo

Registration:

Please click HERE

This event is restricted to NUS Staffs and Students only


Abstract

This study simultaneously analyzes the real estate production function and economic depreciation of structures by using data from Japan and the U.S. The estimated share of structure value is used to infer returns to scale, the land-structure substitution, and the structure depreciation rate. Real estate exhibits approximately constant returns in Japan, but decreasing returns in the U.S. Land and structures are gross substitutes in both countries. The land value ratio is 10% in Centre County, PA, but 60%-70% in Japan, reflecting the scarcity of land. The property depreciation rate is larger for newer and denser properties located further away from the downtown area in a smaller city. The structure depreciation rate corrected for a survivorship bias significantly varies by property type and country: approximately 7% for residential properties and 10% for commercial properties in Japan in contrast with 1% for residential structures in the U.S. These results serve as important inputs for macro, financial, urban, and real estate economic models.

About the Speaker

Dr. Jiro Yoshida is Associate Professor of Business at the Smeal College of Business and Fellow at the Institute for Real Estate Studies, the Pennsylvania State University. He also serves as Senior Fellow at Policy Research Institute of the Ministry of Finance of Japan, an Expert Committee Member of the Japanese National Land Council, and Research Fellow at the Housing Research and Advancement Foundation of Japan.
Before joining the Smeal College, Dr. Yoshida was Assistant Professor at the Graduate School of Economics, the University of Tokyo. He has also been Visiting Professor at the Haas School of Business, University of California, Berkeley, and Deputy Director at the Development Bank of Japan. He has served as a founding director of the Japanese Association of Real Estate Financial Engineering, and various research councils at the Ministry of Economy, Trade and Industry and the Ministry of Land, Infrastructure, Transport and Tourism.
Dr. Yoshida’s area of research include asset pricing, real estate finance, and macroeconomics. His research is published in top journals such as Journal of Finance, Review of Economics and Statistics, and Real Estate Economics. He is often mentioned by major medias such as New York Times as an expert on Japanese real estate market. He is a recipient of the dissertation award from American Real Estate and Urban Economics Association and Fulbright Scholarship. He has attended the University of Tokyo (B. Eng.), Massachusetts Institute of Technology (M. S.), and University of California, Berkeley (M. S. and Ph. D.)

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