Non-Standard Errors

In statistics, samples are drawn from a population in a data-generating process (DGP). Standard errors measure the uncertainty in estimates of population parameters. In science, evidence is generated to test hypotheses in an evidence-generating process (EGP). We claim that EGP variation across researchers adds uncertainty: Non-standard errors (NSEs). We study NSEs by letting 164 teams test the same hypotheses on the same data. NSEs turn out to be sizable, but smaller for better reproducible or higher rated research. Adding peer-review stages reduces NSEs. We further find that this type of uncertainty is underestimated by participants

Non-standard errors

In statistics, samples are drawn from a population in a data-generating process (DGP). Standard errors measure the uncertainty in estimates of population parameters. In science, evidence is generated to test hypotheses in an evidence generating process (EGP). We claim that EGP variation across researchers adds uncertainty: Non-standard errors (NSEs). We study NSEs by letting 164 teams test the same hypotheses on the same data. NSEs turn out to be sizable, but smaller for better reproducible or higher rated research. Adding peer-review stages reduces NSEs. We further find that this type of uncertainty is underestimated by participants

Optimal Revenue Sharing Contracts with Externalities and Dual Agency

A model of bilateral trade between an upstream supplier (landlord) and a downstream producer (retailer) is constructed, in which the upstream supplier confers long-term property usage rights to the downstream supplier in return for a base rental fee plus a percentage of verifiable sales production. Our model allows for the possibility that downstream sales production complements other activities of the upstream supplier to increase its total revenues. An optimal contract is designed that balances investment incentives of the downstream producer with initial investment and subsequent reinvestment incentives of the upstream supplier. A number of important stylized empirical facts associated with retail lease contracting are addressed with the model, including why: i) retail leases contain base rents and often (but not always) contain an overage rental feature, ii) stores that generate greater externalities pay lower base rents and have lower overage rent percentages than stores that generate fewer externalities, iii) the overage rent option is typically well out-of-the-money at contract execution, and iv) stand-alone retail operations often sign leases that contain an overage rental feature. Optimal Revenue Sharing Contracts with Externalities and Dual Agency I

Financing Choice and Liability Structure of Real Estate Investment Trusts

We conduct an analysis of public financial offerings of equity Real Estate Investment Trusts (REITs), with a focus on liability structure effects and whether or not firms target longer-run debt ratios. Our major findings are that (1) proceeds from equity offers are more likely to fund investment, whereas public debt offer proceeds are typically used to reconfigure the liability structure of the firm; (2) public debt issuers are often capital constrained and target total leverage ratios to retain an investment grade credit rating; and (3) the preoffer liability structure affects the issuance choice decision, in that firms with higher preoffer levels of secured (unsecured) debt tend to issue equity (public debt). Other notable findings are that the market for public REIT debt is integrated with the broader debt markets and that higher credit quality firms issue longer-maturing bonds. Copyright 2003 by the American Real Estate and Urban Economics Association