The ‚Stepchild‘ Real Estate
Real estate has long been considered part of the alternative asset class, often overshadowed by more mainstream investments like stocks and bonds.Despite its critical role in the economy, real estate…
Today we have new tools based on computation. From them, we can get much richer and dynamic models that don’t require the simplified reductive assumptions of traditional economics. After the Global Financial Crisis there are paradigm shifts towards behavioral economics, psychology and complexity theory. Nobel prizes have been accredited to behavioral economists. Nobody believes in equilibrium, rational agents, perfect information and uncertainty reduced to a simple probability distribution anymore. Turner, Picketty and Stiglitz among others are fierce critiques of the standard economic models.
Real estate has long been considered part of the alternative asset class, often overshadowed by more mainstream investments like stocks and bonds.Despite its critical role in the economy, real estate…