|An Analysis of Shopping Center Investment.
||During the 1980s, the oversupply of retail space has lowered rents, raised vacancies, and damaged the integrity of financial institutions as developers and other borrowers have been forced into default. This paper explores the propensity of developer...
|An Analysis of State Guaranty Fund Assessments for Property/Casualty Insurers from 1979-90.
||This study analyzes features of property and liability insurance guaranty funds and net assessments on a state-by-state basis over the 12-year period ending in 1990. Previous research has looked at individual company risk factors in predicting insolv...
|The Announcement Effect of an Airport Expansion on Housing Prices
||The purpose of this study is to examine the influence of the announcement of a new airport hub on housing prices near the airport. While numerous studies of airport noise have found that high noise levels reduce property values, few have been able to...
|Atypicalities and Apartment Rent Concession.
||This paper examines the use and value of rental concessions using a 1988 sample of apartment rents in the Greensboro/High Point/Winston-Salem (North Carolina) MSA. The first section develops an approach to the problem and the second section estimates...
|The Capitalization Rate of Commercial Properties and Market Returns.
||This study develops a model of real estate cap rates that draws on the weighted average cost of capital (WACC) theory and the capital asset pricing model (CAPM) in the finance literature. The model indicates cap rates are determined by debt and equit...
|Competition in Real Estate Brokerage from National Banks and Financial Holding Companies
||The passage of the Gramm-Leach-Bliley Act (GLB) in 1999 permits nationally-chartered banking institutions to engage in real estate brokerage business if certain conditions are met. However, the Community Choice in Real Estate Act legislation seeks to...
|Cost Differences of Distribution Systems by Line in the Property and Liability Insurance Industry
||This study identifies changes in aggregate market share between 1976 and 1988 for property and liability companies classified by distribution system. Evidence is presented that distribution system type produces differences in relative total expense l...
|Cost Effects of Comparative Negligence: Tort Reform in Reverse.
||This study uses automobile insurance loss costs as a proxy for tort system costs under contributory and comparative negligence standards. The principal finding is that insurance consumers in states that have adopted comparative negligence pay more fo...
|Cost Implications of No-Fault Automobile Insurance.
||No fault advocates commonly predict automobile insurance cost savings for consumers in states adopting no-faults statutes in place of a tort system. For states implementing no-fault, the cost results have been mixed. This study compares the loss cost...
|The Cost of Trade Credit: A Net Present Value Perspective.
||Trade credit represents a substantial portion of short-term credit for most firms. A trade credit decision is usually limited to a comparison of the effective cost of trade credit with the annual cost of borrowing. If the cost of not taking the cash ...
|Default Risk Premia in the Near Cash Investment Market: The Case of Auction Rate Preferred Stock and Commercial Paper.
||Auction rate preferred stock (ARPS) is often regarded as an alternative to other near-cash instruments such as commercial paper while the dividend exclusion for ARPS offers tax advantages to corporate purchasers. The mean default risk premium for ARP...
|Do Some People Work Harder Than Others?
||The decision to work and its levels of intensity are estimated for the real estate brokerage industry where workers can set their own hours. A three-stage model of the brokerage labor market is presented with decisions made recursively between full- ...
|The Dynamics of Metropolitan Housing Prices.
||This article is the winner of the Innovative Thinking "Thinking Out of the Box" manuscript prize (sponsored by the Homer Hoyt Advanced Studies Institute) presented at the 2001 American Real Estate Society Annual Meeting. This study examines the dynam...
|The Earnings of Real Estate Salespersons and Others in the Financial Services Industry.
||This study explores the determinants of earnings of salespersons in financial services using nationwide data from the 1990 U.S. Census. The study reveals that security and insurance salespersons earn substantially more than do persons in real estate ...
|An Evaluation of the Asset Integrated Mortgage
||The Federal National Mortgage Association (FNMA) recently approved a new type of hybrid mortgage, the Asset Integrated Mortgage (AIM), that combines a home loan and a fixed insurance annuity. The borrower invests most of the money in an annuity that ...
|Experience from Early Tort Reforms: Comparative Negligence Since 1974.
||Insurance consumers in states that have adopted comparative negligence pay more for automobile liability insurance than do consumers in states that retain contributory negligence. Through the use of a transformed generalized least squares regression ...
|Financial Strength Characteristics of Firms: An Explanation of the P/E Anomaly?
||The P/E anomaly is the widely accepted proposition that even after adjusting for risk as mea-sured by beta, low P/E stocks have higher returns than high P/E stocks. The literature includes substantial evidence supporting the proposition. Recent resea...
|Financing Costs of Additional Funds Needed: A Modified Equation Approach.
||The additional funds needed (AFN) equation is a popular forecasting model for estimating additional funds requirements (Brigham ). Academicians regard the AFN equation as an excellent pedagogical tool; practitioners find it highly beneficial for m...
|Franchising in Residential Brokerage
||This paper explores the profitability of real estate franchises. The database for the study consists of observations from the National Association of Realtors®' 2001 survey of real estate brokerage firms. Franchises are found to generate additional r...
|The Graduated Payment Mortgage: Solving the Initial Payment Enigma.
||The graduated-payment mortgage (GPM) has a unique stair-step payment schedule that often enhances borrower qualification for young, first-time home buyers who are anticipated to have increasing incomes. The determination of the initial payment on a G...
|The Impact of Auctions on Residential Sales Prices in New Zealand.
||The use of an auction to sell residential real estate in the United States is often associated with distressed sales such as foreclosure, bankruptcy or estate settlement. In other areas of the world, auctions are more commonly used and viewed as a vi...
|The Impact of Information Technology on Real Estate Licensee Income
||The evolution of the Internet and other forms of information technology are changing dramatically the way the real estate brokerage industry does business. While a number of previous studies have examined the earnings of real estate salespersons, few...
|The Integration of Retail Space Markets
||This study estimates optimized
portfolios on an efficient frontier of real estate investment
in the retail sector of fifty-eight metropolitan markets
(MSAs), using quarterly sample data covering 1987-
2000. The efficient opportunity sets and asso...
|A Model of Real Estate Sales as a Career Choice.
||This article develops a model of the probability that individuals choose careers in real estate sales. The model is estimated using Census data. Females are found to be significantly more likely than males to enter the field. For males, the probabili...
|No-Fault Cost Savings: Reality or Myth?
||The authors report the results of a study of no-fault insurance premiums. They conclude that premiums are no higher in fault states than in no-fault states. They suggest that it is not clear whether no-fault is "less costly" as proponents claim, and ...
|A Note on Licensing and the Market for Real Estate Agents.
||This study develops and estimates a model of real estate agent demand and supply. The estimates of the model show that the licensing examination pass rate and the educational requirements set by state licensing boards affect the numbers and incomes o...
|Price Indexes for Commercial and Office properties: An Application of the Assessed Value Method
||This study constructs a nonresidential,
constant-quality price index, based on the assessed-
value approach, and adjusts for the possibility for
sample selection bias. The sample consists of a large
sample of commercial and office properties loca...
|Price Spreads and Residential Housing Market Liquidity
||Most studies of housing market liquidity twee measured liquidity in terms of time on the market (TOM), and have sought to explain TOM in terms of property characteristics and measures of market conditions. This paper departs from past studies of hous...
|The Pricing of Dutch Auction Rate Preferred Stock.
||The emergence of dutch auction rate preferred stock (DARPS) in 1984 created a new security which offers features to meet the needs of short-term corporate investors. The instrument offers attractive after-tax yields due to the preferential dividend i...
|Profitability Through Product Expansion: Does It Work In The Real Estate Brokerage Industry?
||This paper examines the economics of product expansion in the real estate brokerage industry. A two-stage model is developed to examine the effects of product expansion on the profitability of these firms. In the first stage, a variable for additiona...
|The Q Theory of Housing Investment
||This paper presents estimates of a Q model of housing investment, using quarterly data for the United States. The empirical model is estimated using building permits, housing starts, and housing investment expenditures as measures of investment. The ...
|Retail Vacancy Rates: The Influence of National and Local Economic Conditions
||This study examines the extent to
which local retail vacancy rates are influenced by vacancy
rates in surrounding communities versus the overall
national vacancy rate in the retail sector. Consistent
with prior research, our simultaneous spatial ...
|Returns to Single-Family Owner-Occupied Housing
||This study examines the rate of return and risk on single-family, owner-occupied housing nationally and at the MSA level. The homeowner using no leverage, and a 28% tax rate, earned an 11.81% annual return, 5.85% from implicit rental savings and 5.63...
|The Role of Commission Rates and Specialization in the Determination of Real Estate Agent Income
||This paper explores the performance of residential real estate agents and the commission
structure under which they operate. This study reveals the interrelationship among the
number of properties sold by an agent, the dollar volume of sales, and r...
|A Simultaneous Model and Empirical Test of the Demand and Supply of Retail Space.
||Much of the burgeoning distress of the 1990s in the United States retail space markets reflects a mismatch in the amount and location of retail space demand and supply. Understanding the demand and supply for retail space is critically important to a...
|Single-Family Housing and Wealth Portfolios
||This paper explores the risk and
return of a portfolio of single-family housing during
1978:1-2001:4 in the context of a portfolio of financial
assets. Homeownership offers higher returns to those
who have higher tax brackets, longer investment h...
|Solving for the Number of Cash Flows and Periods in Financial Problems.
||The time value of money (NM) concepts often receive more attention in introductory finance courses than do other topics. Textbook solutions to time value of money problems usually instruct students to solve for the number of periods to the closest ye...
|Sorting, Franchising and Real Estate Brokerage Firms
||Real estate markets remain localized and reflect differences by region. With a large number of brokerage firms and a smaller number of franchisors, a testable hypothesis is whether in equilibrium fees and royalties are equal to the additional return ...
|The Supply Adjustment Process in Retail Space Markets.
||Previous research has reported that the real estate market for retail space is slow to adjust, however, comparatively little research has investigated the supply of retail space for individual metropolitan markets. This study presents our findings by...
|Technology and Real Estate Brokerage Firm Financial Performance
||This study investigates the impact of Internet usage on the financial performance of residential real estate brokerage firms using a database of over 1,700 observations. Factor loadings and a factor score for Internet usage are developed. The results...
|Technology and Realtor Income
||The ever-expanding use of the Internet and various other information technologies may directly impact the income levels of the real estate brokerage community. With a database of more than 6,000 usable observations from the 1999 National Association ...
|Time on the Market: The Impact of Residential Brokerage.
||This paper examines the impact of brokers, brokerage firms and marketing strategy on time on the market (TOM) in the residential housing market. Using a duration model methodology, the study finds duration dependence to be positive, suggesting that t...
|The Value of Smoking Prohibitions in Vacation Rental Properties.
||We examine the value of smoking prohibitions by developing a model of the rent differential between smoking and nonsmoking properties. We empirically test for the rent differential using a data set of vacation rental properties from the Outer Banks o...
|What Do Real Estate Brokers Do: An Examination of Excess Returns in the Housing Market.
||This paper explores the effect of real estate brokerage-firm and agent characteristics on the prices received by home sellers. It develops a model for assessing the impact of firm and agent characteristics on the prices received by sellers in a multi...