Large MSAs Research Articles

Measuring the Effectiveness of Geographical Diversification

Executive Summary. How many markets does it take to form a geographically well-diversified portfolio? Using a simulated approach, this study investigates the effectiveness of geographic diversification across the metropolitan areas in the United States. Four diversification schemes, the “Mixed MSA,” “Large MSA Only,” “Simultaneous,” and “Large MSA by Property Type,” are analyzed. The effectiveness of diversification is measured by the proportional portfolio risk reduction from the risk of single market. The findings suggest that: (1) it takes a large number of markets to eliminate most of nonsystematic risk in portfolios; (2) diversifying across large MSAs only is much less effective than across all MSAs; and (3) different types of properties exhibit very different risk reduction capability. The study raises the question as to how well-diversified are current institutional portfolios.

Real Estate Portfolio Diversification and Performance of the Twenty Largest MSAs

Executive Summary. This study evaluates the relative portfolio performance of the twenty largest MSAs by population through the application of modern portfolio theory (MPT) to economic base analysi...

THE SPATIAL PATTERNS OF EMPLOYMENT CHANGE IN LARGE AMERICAN METROPOLISES: 1947–1977

The patterns of economic activity dispersal that have characterized metropolitan areas and their suburbs since the late 1940s are examined using employment data compiled for municipalities. Measures of the spatial distribution of employment permitted the analysis of intermetropolitan, intersectoral, and intrasuburban patterns of economic change over three decade-long periods in ten large MSAs located predominantly in the northeastern part of the nation. The study revealed significant differences in both the levels and rates of dispersal among the MSAs along regional and age dimensions. Considerable similarity in the chronology of sectoral dispersal patterns was apparent. Analysis of data for individual suburban communities by MSA revealed that areas of highest economic growth have shifted farther outward into the suburbs; however, considerable infilling within closer suburban communities has continued to occur. Newer metropolises exhibited more variable patterns of intrasuburban change than older ones.

Regional Growth and Interregional Migration - Their Pattern of Interaction

The starting point for this study was recognition of considerable differences among previous studies of causes of regional growth and wage disparities in the United States. This paper describes a multi-equation model for empirical analysis of these differences and presents results achieved in applying the model to cross-sectional data measuring the performance of 56 large MSAs.