Real Estate and Economy

Contents: Preface. 1. Real estate appraisal. 2. Real estate Bubble and countries. 3. Real estate financing. 4. Diamond-Dybvig model. 5. Mortgage backed security and bond. 6. Ecological economics and economist. 7. Debt consolidation. 8. Sortition and subsidiarity. 9. Community Reinvestment Act. 10. American recovery and Reinvestment Act of 2009. 11. Subprime crisis impact timeline. Index.

The need for appraisal arises from the heterogeneous nature of property as an investment class: no two properties are identical, and all properties differ from each other in their location which is one of the most important determinants of their value. So there cannot exist a centralized Walrasian auction setting for the trading of property assets, as there exists for trade in corporate stock. The absence of a market based pricing mechanism determines the need for an expert appraisal/valuation of real estate/property.