Geographic diversification allows those involved in real estate markets to manage risk. In this paper we discuss the role of local economic diversification in risk management. We show that residential foreclosure rates are negatively related to local economic diversification. We conclude that geographical diversification with reference to local economic diversification is more efficient than naive geographic diversification alone.
No takes yet. Share an insight, caveat, or question.
Terrence M. Clauretie (1988) studied this question.
Synapse has enriched 4 closely related papers on similar clinical questions. Consider them for comparative context: