Abstract
Although real estate accounts for the most household assets in Korea, only a few studies have been performed to identify the determinants of real estate assets, and in particular, few studies on income from real estate. Utilizing the SUR two-way fixed effect model, this study analyzed the relationship between assets and income from real estate. The empirical results present that the household head creates an income stream through real estate assets, and the income stream is invested in a virtuous cycle to accumulate real estate assets. However, the reciprocal relationship between real estate assets and income for the long-term virtuous cycle was about 0.2, which is not strong. This result may imply that the main purpose of Koreans buying real estate assets is for arbitrage transactions rather than cash flow. As this study is the first attempt to demonstrate the long-term correlation between real estate assets and income, further research needs to provide more in-depth discussion and policy implications.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
