Taxes and Foreign Real Estate Investment

In recent years studies examining international mixed-asset portfolios have failed to uncover any significant benefits from foreign real estate. These papers have concentrated their focus on foreign exchange rate risk as "the problem" with respect to foreign investments, and therefore they sought solutions from traditional hedging tools such as leverage, options, forward contracts and even currency swaps. This study considers differences among countries in national income tax rates as a plausible explanation for the interest in foreign real estate investment. Hypothetically, it may be possible for investors to move a portion of their wealth to a foreign country and take advantage of lower marginal tax rates. After-tax returns from mixed-asset portfolios consisting of (1) domestic financial assets only, (2) domestic financial assets plus foreign financial assets, and (3) domestic financial assets, foreign financial assets and foreign real estate are evaluated. The findings indicate that there are no significant after-tax benefits for foreign investors from investment in U.S. real estate.

The Real Estate Portfolio of the United States House of Representatives

This study examines the real estate investments of members of the United States House of Representatives from 1985-1995 with a focus on agency theory. The real estate holdings are characterized in terms of the number of properties owned, the reported value of the properties, property types, the property locations and transactions. We find that Representatives hold more real estate when compared to those of other U.S. investors with similar levels of income. Representatives also seem to time the market better, presumably because they understand more about the implications of the changes in tax laws they enacted. Thus the Tax Reform Act of 1986 caused House members to reduce their real estate holdings much faster than other U.S. investors. This lower level of real estate investment may also have reduced the economic linkages between Representatives and their constituents, which might affect their incentive to fight for the interests of their constituents.

Lumber Futures and Timberland Investment

Using 20 years of data, we derive a pricing model for timberland market values. We examine the relationship between lumber futures, capitalization rates, anticipated inflation, anticipated construction and timberland value. Using an ordinary least squares regression model and Johansen’s cointegration technique, we find that timberland market values have a long-run significant positive equilibrium relationship with lumber futures, and building permits. Capitalization rates have a significant negative relationship as expected. In the short run, unanticipated shocks in the independent variables provide a permanent change in timberland market values.

Why Do Borrowers Choose Adjustable-Rate Mortgages over Fixed-Rate Mortgages? : A Behavioral Investigation

A considerable number of U.S. borrowers still choose adjustable rate mortgages (ARMs) over fixed rate mortgages (FRMs) even when interest rates are historically very low. This study examines the psychological reasons for the popularity of ARMs by testing the Prospect theory’s reflection hypothesis. Experiments are conducted using business professionals. The results suggest that psychological factors may explain why ARM borrowers tend to ignore the associated risk factors, focusing heavily upon pricing factors when choosing mortgage type. The results also indicate that borrowers may be viewing mortgage selection as part of a positive choice; namely, acquiring a home.Adjustable-rate mortgage; Fixed-rate mortgage; Prospect theory; Reflection hypothesis; Experiment

The separation of falling binary liquid film in the presence of inert components by diffusion distillation

This paper was presented at the 3rd Micro and Nano Flows Conference (MNF2011), which was held at the Makedonia Palace Hotel, Thessaloniki in Greece. The conference was organised by Brunel University and supported by the Italian Union of Thermofluiddynamics, Aristotle University of Thessaloniki, University of Thessaly, IPEM, the Process Intensification Network, the Institution of Mechanical Engineers, the Heat Transfer Society, HEXAG - the Heat Exchange Action Group, and the Energy Institute.The effects of heat and mass transfer on selectivity and mass fluxes in falling film evaporation of binary mixture on vertical surface, in the presence of inerts in gas (air, helium) and liquid (glycol) phase were investigated. The mathematical model of the process with different simplifying assumptions concerning heat and mass transfer was elaborated. In numerical calculations mass transfer resistances in both gas and liquid phases were considered. Experimental study was performed for 2-ipropanol-water system in the wide range of concentrations and temperatures. The comparison shows small effect of diffusional cross effects on mass transfer and selectivity

Year One Annual Report: Activities, Findings and Evaluators\u27 Reports

The ultimate goal of NCETE is to infuse engineering design, problem solving and analytical skills into 9-12 grades through technology education in order to increase the quality, quantity, and diversity of engineering and technology educators, and to significantly strengthen the pathways to engineering and technology professions for students. The Center is doing this by teaming engineering faculty and technology education faculty in a systematic approach that involves: 1. Building a community of researchers, leaders, and PhD students to conduct research in emerging engineering and technology education areas. 2. Creating a body of research that improves our understanding of learning and teaching engineering and technology subjects. 3. Preparing technology education teachers at the BS and MS level who can infuse engineering design into the curriculum (current and future teachers). 4. Strengthening the pathways for a diverse population of students who select engineering, science, mathematics, and technology careers. NCETE divided tasks into four components: 1) the Graduate Program Component, 2) the Technology Teacher Education Component, 3) the Research Component, and 4) the Recruiting and Retention Component. Described below are the major research and education activities within each component

Hedging Foreign Investments in U.S. Real Estate with Currency Options

Historically, the volatility in exchange rates appears to have generated so much risk in U.S. real estate returns that, from the foreign investor's viewpoint, it eliminated any potential for obtaining diversification benefits from these assets. Yet during the past twenty years foreigners purchased and continue to hold enormous amounts of U.S. real estate. This study examines the use of currency options as a means of hedging the exchange rate risk associated with a foreign investment in U.S. real estate. The findings indicate that currency options behave very much like an insurance policy. When used on a continuous basis, they insure foreign investors against any large sudden currency losses and spread the cost of these extreme losses out over time. Thus, from the foreign investor's perspective, the total risk in U.S. real estate returns is substantially reduced. However, these improvements are insufficient to make U.S. real estate consistently attractive to these investors in a mean-variance portfolio framework.

Sources of Funding and Factors Influencing Choice of Journal

Open access (OA) journals distribute their content at no charge and use other means of funding the publication process. Publication fees or article processing charges (APC)s have become the predominant means for funding professional OA publishing. We surveyed 1,038 authors who recently published articles in 74 OA journals that charge APCs stratified into seven discipline categories. Authors were asked about the source of funding for the APC, factors influencing their choice of a journal and past history publishing in OA and subscription journals. Additional information about the journal and the authors’ country were obtained from the journal website. A total of 429 (41%) authors from 69 journals completed the survey. There were large differences in the source of funding among disciplines. Journals with impact factors charged higher APCs as did journals from disciplines where grant funding is plentiful. Fit, quality, and speed of publication where the most important factors in the authors’ choice of a journal. Open access was less important but a significant factor for many authors in their choice of a journal to publish. These findings are consistent with other research on OA publishing and suggest OA publishing funded through APCs is likely to continue to grow.nonPeerReviewe

Integrated evaporation-condensation process of binary liquid mixture separation

Paper presented at the 9th International Conference on Heat Transfer, Fluid Mechanics and Thermodynamics, Malta, 16-18 July, 2012.The effects of heat and mass transfer on selectivity and mass fluxes in falling film evaporation of binary mixture on vertical surface, in the presence of inerts in gas (air, helium) and liquid (glycol) phase were investigated. The mathematical model of the process with different simplifying assumptions concerning heat and mass transfer was elaborated. In numerical calculations mass transfer resistances both in gas and liquid phases were considered. Experimental study was performed for 2-ipropanol-water system in the wide range of concentrations and temperatures. The comparison shows small effect of diffusional cross effects on mass transfer and selectivity.dc201

Year Two Annual Report: Activities, Findings and Evaluators\u27 Reports

A major challenge in the work of the National Center for Engineering and Technology Education has been the need to strengthen the research climate across the institutional settings. A number of activities have been directed at that effort: internal funding of small student and faculty research projects; presentations by researchers at Center meetings; providing a research focus for the required core courses in cognitive science, design, problem solving, and creativity; and the evolution of the research framework for the Center. The internal research program has been successful in providing relatively non-threatening experiences with proposal preparation, review, negotiation, and the conduct of small research projects. Six proposals were funded for exploratory research projects in 2005-2006. As these projects are completed, the researchers have shared their findings with their Center colleagues and at professional conferences. The Research Committee has completed its review of the second internal competition and the successful proposals are being negotiated as this report is being prepared in early June 2006. The internal research program has provided opportunities for students and faculty to develop their research capabilities to investigate new areas. The program has also helped to introduce a collaborative, research-focused interchange among the Center faculty as they establish and monitor the program