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Name: Anna Maria Panosa Gubau

Institution/Company: Universitat de Girona

Position: Associate Professor

Speculation and Real Estate: Can Speculation Contribute to an Efficient Real Estate Market?

In financial markets, speculation is justified by its contribution to liquidity, hedging, and, if rationally done, for adjusting price to value. Derivatives are essential to turn speculation into an element that contributes an efficient market. Property assets have the distinctive feature of being, residential and productive assets, and, investment assets. This paper studies how speculation may have a positive contribution to the real estate market by regarding it from the triple perspective of property, primitive financial assets, and derivatives. We approach an answer by trying to identify which assets are needed to this end and how they can contribute to guide speculation to efficiency. On this basis, we examine the development of the derivatives on real estate indexes and the perspectives of their future evolution, including their impact on the real market.

29.6.2014 | Anna Maria Panosa Gubau, Maria Teresa Bosch-Badia, Joan Montllor-Serrats, Maria-Antonia Tarrazon-Rodon | Volume: 1 | Issue: 2 | Pages: 44-52 | 10.13060/23362839.2014.2.2.114
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