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¿Can the stock market boost economic growth? evidence from the Mexican real estate investment trust (REIT)

Author

Listed:
  • Razo-De-Anda, Jorge Omar

    (Escuela Superior de Economía, Instituto Politécnico Nacional)

  • Cruz-Aké, Salvador

    (Escuela Superior de Economía, Instituto Politécnico Nacional)

  • Venegas-Martínez, Francisco

    (Escuela Superior de Economía, Instituto Politécnico Nacional)

Abstract

This paper develops a stochastic dynamic general equilibrium model to assess the impact of Real Estate Investment Trust (REIT) in the growth rate of the real estate sector through direct investment in infrastructure. Based on the theoretical relationships that the model provides we show empirical evidence, through a quantile econometric analysis of time series, of the positive impact of the REITs in the construction sector. The growth in the construction sector comes from the demand for real estate by those trusts, which would lead to a price increase, promoting gross fixed capital formation, and increasing the value of output in the construction industry.

Suggested Citation

  • Razo-De-Anda, Jorge Omar & Cruz-Aké, Salvador & Venegas-Martínez, Francisco, 2022. "¿Can the stock market boost economic growth? evidence from the Mexican real estate investment trust (REIT)," Panorama Económico, Escuela Superior de Economía, Instituto Politécnico Nacional, vol. 17(36), pages 9-32, Primer se.
    • Handle: RePEc:ipn:panora:v:17:y:2022:i:36:p:9-32
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    References listed on IDEAS

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    More about this item

    Keywords

    real estate investment trust; real estate markets; financial markets; general equilibrium.;
    All these keywords.

    JEL classification:

    • R33 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Nonagricultural and Nonresidential Real Estate Markets
    • D53 - Microeconomics - - General Equilibrium and Disequilibrium - - - Financial Markets
    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics

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