A Simulation Analysis of the Relationship between Retail Sales and Shopping Center Rents

This article examines the variation in rents per square foot among regional shopping centers in the United States in response to variation in retail sales per square foot. The analysis breaks new ground by treating base and percentage rents as endogenous functions of retail sales. The analysis further distinguishes between de facto, if not de jure, fixed and percentage leases, and between new versus existing leases. Simulation results suggest that shopping center rents can easily increase in the short-run as retail sales decrease, or they can easily decrease as retail sales increase. In addition, the results suggest that shopping center rents per square foot generally react more aggressively to an increase in retail sales per square foot over time than to a decrease in retail sales per square foot, all else equal

The Effect of Firm Characteristics on the Use of Percentage Retail Leases

Choice of lease payments has been widely studied in the literature. There are three—not necessarily exclusive—explanations that have received attention. The first attributes the choice of fixed versus percentage lease payments to risk-sharing preferences. The second explanation views percentage-of-sales lease agreements as a way discriminating monopolists can appropriate economic rents. The third attributes percentage-of-sales lease agreements to a metering and bonding argument. This paper examines the proposition that the choice of percentage retail leases is driven in part by managements\u27 desire to circumvent the cost of violating debt covenant restrictions. The evidence presented here supports the prediction that retail firms with higher debt–asset ratios are more likely to adopt percentage lease agreements

Moral hazard under commercial and universal banking

Many claims have been made about the potential benefits, and the potential costs, of adopting a system of universal banking in the United States. We evaluate these claims using a model where there is a moral hazard problem between banks and “borrowers,” a moral hazard problem between banks and a deposit insurer, and a costly state verification problem. Under conditions we describe, allowing banks to take equity positions in firms strengthens their ability to extract surplus, and exacerbates problems of moral hazard. The incentives of universal banks to take equity positions will often be strongest when these problems are most severe.Universal banks

Deposit insurance: a reconsideration

This paper undertakes a simple general equilibrium analysis of the consequences of deposit insurance programs, the way in which they are priced and the way in which they fund revenue shortfalls. We show that the central issue is how the government will make up any FDIC losses. Under one scheme for making up the losses, we show that FDIC policy is irrelevant: it does not matter what premium is charged, nor does it matter how big FDIC losses are. Under another scheme, all that matters is the magnitude of the losses. And there is no presumption that small losses are “good.” We also show that multiple equilibria can be observed and Pareto ranked. Some economies may be “trapped” in equilibria with inefficient financial systems. Our analysis provides counterexamples to the following propositions. (1) Actuarially fair pricing of deposit insurance is always desirable. (2) Implicit FDIC subsidization of banks through deposit insurance is always undesirable. (3) “Large” FDIC losses are necessarily symptomatic of a poorly designed deposit insurance system.Deposit insurance

A Simulation Analysis of the Relationship between Retail Sales and Shopping Center Rents

This article examines the variation in rents per square foot among regional shopping centers in the United States in response to variation in retail sales per square foot. The analysis breaks new ground by treating base and percentage rents as endogenous functions of retail sales. The analysis further distinguishes between de facto, if not de jure, fixed and percentage leases, and between new versus existing leases. Simulation results suggest that shopping center rents can easily increase in the short-run as retail sales decrease, or they can easily decrease as retail sales increase. In addition, the results suggest that shopping center rents per square foot generally react more aggressively to an increase in retail sales per square foot over time than to a decrease in retail sales per square foot, all else equal.

An order (n) algorithm for the dynamics simulation of robotic systems

The formulation of an Order (n) algorithm for DISCOS (Dynamics Interaction Simulation of Controls and Structures), which is an industry-standard software package for simulation and analysis of flexible multibody systems is presented. For systems involving many bodies, the new Order (n) version of DISCOS is much faster than the current version. Results of the experimental validation of the dynamics software are also presented. The experiment is carried out on a seven-joint robot arm at NASA's Goddard Space Flight Center. The algorithm used in the current version of DISCOS requires the inverse of a matrix whose dimension is equal to the number of constraints in the system. Generally, the number of constraints in a system is roughly proportional to the number of bodies in the system, and matrix inversion requires O(p exp 3) operations, where p is the dimension of the matrix. The current version of DISCOS is therefore considered an Order (n exp 3) algorithm. In contrast, the Order (n) algorithm requires inversion of matrices which are small, and the number of matrices to be inverted increases only linearly with the number of bodies. The newly-developed Order (n) DISCOS is currently capable of handling chain and tree topologies as well as multiple closed loops. Continuing development will extend the capability of the software to deal with typical robotics applications such as put-and-place, multi-arm hand-off and surface sliding

Control and structural optimization for maneuvering large spacecraft

Presented here are the results of an advanced control design as well as a discussion of the requirements for automating both the structures and control design efforts for maneuvering a large spacecraft. The advanced control application addresses a general three dimensional slewing problem, and is applied to a large geostationary platform. The platform consists of two flexible antennas attached to the ends of a flexible truss. The control strategy involves an open-loop rigid body control profile which is derived from a nonlinear optimal control problem and provides the main control effort. A perturbation feedback control reduces the response due to the flexibility of the structure. Results are shown which demonstrate the usefulness of the approach. Software issues are considered for developing an integrated structures and control design environment

Electric-field control of magnetic ordering in the tetragonal BiFeO3

We propose a way to use electric-field to control the magnetic ordering of the tetragonal BiFeO3. Based on systematic first-principles studies of the epitaxial strain effect on the ferroelectric and magnetic properties of the tetragonal BiFeO3, we find that there exists a transition from C-type to G-type antiferromagnetic (AFM) phase at in-plane constant a ~ 3.905 {\AA} when the ferroelectric polarization is along [001] direction. Such magnetic phase transition can be explained by the competition between the Heisenberg exchange constant J1c and J2c under the influence of biaxial strain. Interestingly, when the in-plane lattice constant enlarges, the preferred ferroelectric polarization tends to be canted and eventually lies in the plane (along [110] direction). It is found that the orientation change of ferroelectric polarization, which can be realized by applying external electric-field, has significant impact on the Heisenberg exchange parameters and therefore the magnetic orderings of tetragonal BiFeO3. For example, at a ~ 3.79 {\AA}, an electric field along [111] direction with magnitude of 2 MV/cm could change the magnetic ordering from C-AFM to G-AFM. As the magnetic ordering affects many physical properties of the magnetic material, e.g. magnetoresistance, we expect such strategy would provide a new avenue to the application of multiferroic materials.Comment: 4 pages, 4 figure

Breakdown of the lattice polaron picture in La0.7Ca0.3MnO3 single crystals

When heated through the magnetic transition at Tc, La0.7Ca0.3MnO3 changes from a band metal to a polaronic insulator. The Hall constant R_H, through its activated behavior and sign anomaly, provides key evidence for polaronic behavior. We use R_H and the Hall mobility to demonstrate the breakdown of the polaron phase. Above 1.4Tc, the polaron picture holds in detail, while below, the activation energies of both R_H and the mobility deviate strongly from their polaronic values. These changes reflect the presence of metallic, ferromagnetic fluctuations, in the volume of which the Hall effect develops additional contributions tied to quantal phases.Comment: 11 pages, 3 figures, final version to appear in Phys. Rev. B Rapi