TY  - JOUR
AU  - Garmaise,Mark J.
AU  - Moskowitz,Tobias J.
TI  - Confronting Information Asymmetries: Evidence from Real Estate Markets
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 8877
PY  - 2002
Y2  - April 2002
UR  - http://www.nber.org/papers/w8877
L1  - http://www.nber.org/papers/w8877.pdf
N1  - Author contact info:
Mark Garmaise
Anderson Graduate School of Management
C511 Entrepreneurs Hall
110 Westwood Plaza
Los Angeles, CA 90095-1481
Tel: 310/794-4118
E-Mail: mark.garmaise@anderson.ucla.edu

Tobias J. Moskowitz
Booth School of Business
University of Chicago
5807 S. Woodlawn Ave.
Chicago, IL  60637
Tel: 773/834-2757
Fax: 773/702-0458
E-Mail: tobias.moskowitz@chicagobooth.edu
AB  - This paper studies the role of asymmetric information in commercial real estate markets in the U.S. We propose a novel and exogenous measure of information based on the quality of property tax assessments in different regions.  Employing direct and indirect information variables, we find strong evidence that information considerations are significant in this market. We show that market participants resolve information asymmetries by purchasing nearby properties, trading properties with long income histories, and avoiding transactions with informed professional brokers.  The evidence that the choice of financing is used to address information concerns is mixed and weak.
ER  -