Income, Value and Returns in Socially Responsible Office Properties

This paper compares alternative methods for taking spatial dependence into account in house price prediction. We select hedonic methods that have been reported in the literature to perform relatively well in terms of ex-sample prediction accuracy. Because differences in performance may be due to differences in data, we compare the methods using a single data set. The estimation methods include simple OLS, a two-stage process incorporating nearest neighbors’ residuals in the second stage, geostatistical, and trend surface models. These models take into account submarkets by adding dummy variables or by estimating separate equations for each submarket. Based on data for approximately 13,000 transactions from Louisville, Kentucky, we conclude that a geostatistical model with disaggregated submarket variables performs best.

Analysis of Economic Depreciation for Multi-Family Property

This paper uses a hedonic pricing model and National Council of Real Estate Investment Fiduciaries data to estimate economic depreciation for multi-family real estate. The findings indicate that investment grade multi-family housing depreciates approximately 2.7% per year in real terms based on total property value. This implies a depreciation rate for just the building of about 3.25% per year. With 2% inflation, this suggests a nominal depreciation rate of about 5.25% per year. Converted into a straight-line depreciation rate that has the same present value, this suggests a depreciable life of 30.5 years - as compared to 27.5 years allowed under the current tax laws. Thus, these laws are slightly favorable to multi-family properties by providing a tax depreciation rate that exceeds economic depreciation, which is in part due to inflation that has been less than expected during the past decade.

Business Enterprise Value in Shopping Malls: An Empirical Test

This paper discusses the economic basis for the existence of business enterprise value in a shopping mall. The existence of business enterprise value in a mall is then tested by examining the rent paid by existing tenants on a lease renewal vs. that paid by new tenants for otherwise identical space. The hypothesis that there is no difference in rents between renewals and new tenants can be rejected. This suggests that with each lease renewal there is a marginal increase in business enterprise value component of the rents. Proposed federal regulations for the appraisal of federally related transactions, the uniform standards of professional appraisal practice, and real property tax law call for separation of the value of intangibles (which include business value) from tangible personal property and from real property. Thus the business value portion of the mall rental should not be capitalized into the value of the real estate. Because income from lease renewals included business value, the leases must be adjusted before they can be used as an indication of market rent.

Tax Consequences of Distributing Equity Compensation Rights in Divorce

This article discusses the federal tax issues arising from the equitable distribution of compensatory stock options and restricted stock in divorce. While the tax consequences of distributing vested options and shares are clear, the treatment of unvested rights is muddled. This article explains the state of the law and provides practical advice to divorce lawyers who confront these issues

Task Force Development to Provide Education and Leadership to the Meat Goat Industry

Chevon is the most frequently consumed meat in the world. Meat goat production is increasing because of the economic value of goats as efficient converters of low-quality forages into quality meat, milk, and hide products for specialty markets of health conscious, ethnic, and faith based consumers. Estimates of national marketing indicate that U.S. meat goat production is nearly 500,000 head less than demand. Where resources are limited, meat goats can be raised efficiently and profitably on small farms, so the country could become self-sufficient in meat goats

Macroeconomic effects of Federal Reserve forward guidance

A large output gap accompanied by stable inflation close to its target calls for further monetary accommodation, but the zero lower bound on interest rates has robbed the Federal Open Market Committee (FOMC) of the usual tool for its provision. We examine how public statements of FOMC intentions - forward guidance - can substitute for lower rates at the zero bound. We distinguish between Odyssean forward guidance, which publicly commits the FOMC to a future action, and Delphic forward guidance, which merely forecasts macroeconomic performance and likely monetary policy actions. Others have shown how forward guidance that commits the central bank to keeping rates at zero for longer than conditions would otherwise warrant can provide monetary easing, if the public trusts it. We empirically characterize the responses of asset prices and private macroeconomic forecasts to FOMC forward guidance, both before and since the recent financial crisis. Our results show that the FOMC has extensive experience successfully telegraphing its intended adjustments to evolving conditions, so communication difficulties do not present an insurmountable barrier to Odyssean forward guidance. Using an estimated dynamic stochastic general equilibrium model, we investigate how pairing such guidance with bright-line rules for launching rate increases can mitigate risks to the Federal Reserve's price stability mandate

Proterozoic crustal evolution of central East Antarctica: Age and isotopic evidence from glacial igneous clasts, and links with Australia and Laurentia

Rock clasts entrained in glacial deposits sourced from the continental interior of Antarctica provide an innovative means to determine the age and composition of ice-covered crust. Zircon U-Pb ages from a suite of granitoid clasts collected in glacial catchments draining central East Antarctica through the Transantarctic Mountains show that crust in this region was formed by a series of magmatic events at ∼2.01, 1.88–1.85, ∼1.79, ∼1.57, 1.50–1.41, and 1.20–1.06 Ga. The dominant granitoid populations are ca. 1.85, 1.45 and 1.20–1.06 Ga. None of these igneous ages are known from limited outcrop in the region. In addition to defining a previously unrecognized geologic history, zircon O and Hf isotopic compositions from this suite have: (1) mantle-like δ18O signatures (4.0–4.5‰) and near-chondritic Hf-isotope compositions (εHf ∼ +1.5) for granitoids of ∼2.0 Ga age; (2) mostly crustal δ18O (6.0–8.5‰) and variable Hf-isotope compositions (εHf = −6 to +5) in rocks with ages of ∼1.88–1.85, ∼1.79 and ∼1.57 Ga, in which the ∼1.88–1.79 Ga granitoids require involvement of older crust; (3) mostly juvenile isotopic signatures with low, mantle-like δ18O (∼4–5‰) and radiogenic Hf-isotope signatures (εHf = +6 to +10) in rocks of 1.50–1.41 Ga age, with some showing crustal sources or evidence of alteration; and (4) mixed crustal and mantle δ18O signatures (6.0–7.5‰) and radiogenic Hf isotopes (εHf = +3 to +4) in rocks of ∼1.2 Ga age. Together, these age and isotopic data indicate the presence in cratonic East Antarctica of a large, composite igneous province that formed through a punctuated sequence of relatively juvenile Proterozoic magmatic events. Further, they provide direct support for geological correlation of crust in East Antarctica with both the Gawler Craton of present-day Australia and Proterozoic provinces in western Laurentia. Prominent clast ages of ∼2.0, 1.85, 1.57 and 1.45 Ga, together with sediment source linkages, provide evidence for the temporal and spatial association of these cratonic elements in the Columbia supercontinent. Abundant ∼1.2–1.1 Ga igneous and metamorphic clasts may sample crust underlying the Gamburtsev Subglacial Mountains, indicating the presence of a Mesoproterozoic orogenic belt in the interior of East Antarctica that formed during final assembly of Rodinia.Field and analytical portions of this project were supported by the National Science Foundation (award 0944645)