Working Paper Series

The Center for Real Estate periodically publishes the Working Paper Series which provides a vehicle for faculty, research associates, fellows, and visiting scholars to highlight their research.

Below is a library of working papers, listed chronologically with most recent papers at the top. 

 

Bricks or Clicks? The Efficiency of Alternative Retail Channels

William C. Wheaton, Dept. of Economics and Center for Real Estate at MIT
Edward Tung, Carmel Partners, MSRED ’18

There is widespread recognition that the retail sector is undergoing a significant transformation [Hortascu and Syverson, 2015]. Rather than have stores act as the intermediary between consumers and producers, Web-based platforms together with efficient destination-based delivery services are providing a viable and thriving alternative. The latter model has been hailed as giving consumers far greater shopping choice and also creating more transparent and competitive prices. In this paper we examine an additional possible advantage of “etailing” over “retailing” – that of operational efficiency. We study the annual financial (10k) reports of 122 firms that represent this full range of alternatives between pure-play internet delivery (Amazon, Land’s End, 1-800Flowers), to traditional pure Brick and Mortar stores (Dollar Stores, Auto Zone) to mixed formats that use both models (Best Buy, J. Crew). We obtain the Gross Profit of each enterprise (Sales Revenue minus Cost-of-Goods) as well as factor inputs (employment, store and distribution space). The question posed is how the various components of a firm’s operating expenses are impacted by the share of its sales that are derived through stores, as opposed to the internet. If internet based “e-tailing” can operate more efficiently, then in addition to providing a broader range of goods, sooner or later it will also provide those goods at lower prices. In this case the winner in the war between bricks and click will be obvious [Bedetti, 2017].  

 

Energy Performance and Capital Expenditures in Manufacturing Industries

Jasper Brinkerink, Free University of Bozen-Bolzano, Faculty of Economics and Management, Centre for Family Business Management
Andrea Chegut, MIT Center for Real Estate
Wilko Letterie, Maastricht University, School of Business and Economics, Department of Organization and Strategy

 
Little is known about how firms change energy consumption over time. Yet to meet global climatechange targets understanding how changes in firm investment impact environmental performanceis important for policy makers and firms alike. To investigate the environmental performance offirms we measure the energy consumption and efficiency of firms in the Netherlands’manufacturing industries before and after large capital expenditures over the 2000 to 2008 period.Unique to this data set, is that firm investment is decomposed into three streams: investment inbuildings only, in equipment only or a simultaneous investment in both buildings and equipment.We find firms increase energy consumption when experiencing a simultaneous investment.However, after large capital expenditures energy efficiency increases. Further decomposition byfirm types suggests that the building capital investments of firms active in high tech industries,energy intensive and low labor intensive industries does not concide with energy efficiencyimprovements, while energy efficiency does increase with capital expenditures in equipment.Hence, from a policy perspective targeted agreements that understand the production process offirms will require a differentiated strategy. In this case, voluntary agreements with firms, like thosewith equipment, may not shift energy consumption due to production demands. Third party verification to enhance transparency, subsidies or R&D tax credits may potentially yield better results. 

 

Brief Thoughts on Housing Supply and Policy*

Albert Saiz, MIT Center for Real Estate

* This working paper is the companion of a homonymous presentation in the conference 
about housing markets organized by the Nederlandsche Bank in Amsterdam on May 24-25, 2018.
A revised version of this document is expected to be published in the volume: “Hot
Property – The Housing Market in Major Cities.” Lohuis, Melanie; Nijskens, Rob; Hilbers,
Paul; and Heeringa, Willem (Editors). Willey, Amsterdam (forthcoming).

 

Is Innovation Really in a Place? Accelerator Program Impacts on Firm Performance

Sheharyar Bokhari, MIT Center for Real Estate

Andrea Chegut, MIT Center for Real Estate

Dennis Frenchman, MIT Dept. of Urban Studies and Planning

Isabel Tausendschoen, Real Estate Innovation Lab

 

2.  Urban Big Data: City Management and Real Estate Markets

Richard Barkham (CBRE)

Sheharyar Bokhari, MIT Center for Real Estate

Albert Saiz, MIT Center for Real Estate

 

3.   Real Trends: The Future of Real Estate in the United States

Albert Saiz, MIT Center for Real Estate

Arianna Salazar, MIT Dept. of Urban Studies and Planning

 

5.   Commercial Building Capital Consumption in the US

David Geltner, MIT Center for Real Estate

Sheharyar Bokhari, MIT Center for Real Estate

 

5.   Commercial Buildings Capital Consumption and the United States National Accounts

Sheharyar Bokhari, MIT Center for Real Estate

David Geltner, MIT Center for Real

 

6.   Energy Efficiency and Economic Value in Affordable Housing

Andrea Chegut, MIT Center for Real Estate

Piet Eichholtz, Maastricht University

Rogier Holtermans, Maastricht University

 

7.   Error Correction Models of MSA Housing “Supply” Elasticities: Implications for Price Recovery

William Wheaton, MIT Center for Real Estate, Department of Economics

Serguei Chervachidze, CBRE Econometric Advisers

Gleb Nechayev, CBRE Econometric Advisers

 

8.   Simultaneous and Solitary Spikes: Investment in Equipment and Buildings

Jasper Brinkerink, Maastricht University, School of Business & Economics

Andrea Chegut, MIT Center for Real Estate

Wilko Letterie, Maastricht University, School of Business & Economics

 

9.   The Price of Innovation: An Analysis of the Marginal Cost of Green Buildings

Andrea Chegut, MIT Center for Real Estate

Piet Eichholtz, Maastricht University School of Business & Economics

Nils Kok, Maastricht University School of Business & Economics

 

10.   The Mistakes People Make: Financial Decision Making when Buying and Owning a Home

Sumit Agarwal, National University of Singapore

Crocker Liu, Cornell University

Walter Torous, Massachusetts Institute of Technology

Vincent Yao, Fannie Mae

 

11.   The Income Tax Penalty on Rental vs Owner-Occupied Housing: An Argument for Apartment Rent Tax Exemption

David Geltner, MIT Center for Real Estate

 

12.   System Dynamics Modeling of Chinese Urban Housing Markets for Pedagogical and Policy Analysis Purposes

David Geltner, MIT Center for Real Estate

Richard de Neufville, MIT Engineering Systems Division

Xin Zhang, MIT Engineering Systems Division

 

13.   Characteristics of Depreciation in Commercial and Multi-Family Property: An Investment Perspective

Sheharyar Bokhari, MIT Center for Real Estate,

David Geltner, MIT Center for Real Estate

 

 

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