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Inflation, Portfolio Choice, and the Price of Land and Corporate Stock

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  • Martin Feldstein

Abstract

This paper presents an explicit model of portfolio demand and uses it to show how the rate of inflation and its variances affect the real prices of land and of common stock. The analysis is thus an extension of two of the author's earlier papers which studied how the interaction of inflation and tax rules alter the real prices of land and stock. The analysis shows the importance of going beyond the traditional assumption that net-of-tax yields are equated for all assets.

Suggested Citation

  • Martin Feldstein, 1980. "Inflation, Portfolio Choice, and the Price of Land and Corporate Stock," NBER Working Papers 0526, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:0526
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    References listed on IDEAS

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    1. James M. Poterba, 1980. "Inflation, Income Taxes, and Owner-Occupied Housing," NBER Working Papers 0553, National Bureau of Economic Research, Inc.
    2. Martin Feldstein, 1978. "The Effect of Inflation on the Prices of Land And Gold," NBER Working Papers 0296, National Bureau of Economic Research, Inc.
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