IDEAS home Printed from https://ideas.repec.org/p/arz/wpaper/eres2010_162.html
   My bibliography  Save this paper

Pension Plan Allocation To Real Estate When Plan Trustees Have Reputational Utility

Author

Listed:
  • Kiat-Ying Seah
  • James D. Shilling

Abstract

This paper offers a new way to explain the puzzling stylized fact that there is a large mass of institutional investors with very little assets in real estate. The paper develops a model in which pension fund trustees will generally skew their holdings of assets toward investments with the potential for high returns, afraid that if they do not invest in assets with high returns, they may not achieve their target return. To that end, pension fund trustees will devote very little resources to investing directly in real estate. Further, the paper finds evidence that pension fund trustees will conform to group consensus (which explains why there is considerable consensus among institutional investors with respect to their actual real estate allocations. The paper also finds that portfolio allocations are quite persistent over time.

Suggested Citation

  • Kiat-Ying Seah & James D. Shilling, 2010. "Pension Plan Allocation To Real Estate When Plan Trustees Have Reputational Utility," ERES eres2010_162, European Real Estate Society (ERES).
    • Handle: RePEc:arz:wpaper:eres2010_162
    as

    Download full text from publisher

    File URL: https://eres.architexturez.net/doc/oai-eres-id-eres2010-162
    Download Restriction: no
    ---><---

    More about this item

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arz:wpaper:eres2010_162. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Architexturez Imprints (email available below). General contact details of provider: https://edirc.repec.org/data/eressea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.