A Note on Embedded Lease Options

Buetow and Albert (1998) discuss options embedded in lease contracts. They present a pricing framework, calibrate it using data from the National Real Estate Index and apply it using a numerical method known as the finite difference method with absorbing boundaries. In this note the analysis is extended. Firstly, analytic solutions are presented. Secondly, some of the findings are discussed. Finally, the framework developed by Grenadier is used to compare indexed renewal options for different lease lengths.

trans-Bis(tert-butylamine)dichloropalladium(II)

The asymmetric unit of the title complex, trans-[PdCl2(NH2tBu)2], consists of two independent square-planar molecules, linked together in a hydrogen-bonding network, with the resultant alignment of the tert-butyl groups defining a two-dimensional layered structure approximately parallel to (001)

Rental Expectations and the Term Structure of Lease Rates

We consider the term structure of lease rates in a general setting where both the interest rate and the short rent are stochastic. Our framework is applicable to any leasing market, but we focus on real estate. We find that the “expectations hypothesis” of lease rates, i.e. that the forward rent is an unbiased estimator of the future short rent, requires similar assumptions as in interest rate theory to hold. To study the magnitude of the bias we parameterize our general framework. The simulations show that different realistic parameter values for risk aversion and interest rate stochastics can generate widely different shapes of the rental term structure, holding the objective rental expectations constant. As a result, an expected increase in rent may very well be consistent with a downward-sloping term structure and vice versa.Term structure of lease rates; Rental expectations; Expectations hypothesis; Lease valuation

A Note on the Pricing of Real Estate Index Linked Swaps

In this paper we discuss the pricing of commercial real estate index linked swaps (CREILS). This particular pricing problem has been studied by Buttimer et al. (1997) in a previous paper. We show that their results are only approximately correct and that the true theoretical price of the swap is in fact equal to zero. This result is shown to hold regardless of the specific model chosen for the index process, the dividend process, and the interest rate term structure. We provide an intuitive economic argument as well as a full mathematical proof of our result. In particular we show that the nonzero result in the previous paper is due to two specific numerical approximations introduced in that paper, and we discuss these approximation errors from a theoretical as well as from a numerical point of view.Real estate; index linked swaps; arbitrage

Wirtschaftswissenschaft in Zeiten der Globalisierung

Seit einiger Zeit ist in der wirtschaftspolitischen Diskussion die Auffassung verbreitet, die Wirtschaftswissenschaft stünde im Globalisierungsprozess wachsenden Ansprüchen gegenüber, verbessertes Steuerungswissen für die Wirtschaftspolitik bereitzustellen. Dass große ökonomische Krisen eine Herausforderung für die Wirtschaftswissenschaft als Erfahrungswissenschaft sind, ist nicht neu. Meine These ist jedoch, dass die Globalisierung und die damit verbundene größere Komplexität der Interdependenzen in der Wirtschaft keine grundsätzlich neuartige Problemstellung für die Wirtschaftswissenschaft enthält. Dafür lassen sich zwei Argumente anführen: Erstens werden die wechselseitigen Abhängigkeiten zwischen den institutionellen Regelungen im Bereich der Wirtschaft (Interdependenz der Regelordnungen) seit langem in der Wirtschaftstheorie im Bereich der Wirtschaftsordnungstheorie - oder moderner der Neuen Institutionenökonomik - behandelt. Zweitens ist die internationale Interdependenz, die von einzelnen Aktionen im ökonomischen Prozess eines Landes ausgelöst wird, beginnend mit der klassischen Theorie des internationalen Handels Anfang des 19. Jahrhunderts von David Ricardo und John Stuart Mill für offene Volkswirtschaften erkannt und erklärt worden. Der heutige Globalisierungsprozess, der ökonomische, soziale und politische Dimensionen hat, schafft aus Sicht der Wirtschaftswissenschaft keine grundsätzlich neuartigen Problemstellungen. Allerdings sind die internationalen Abhängigkeiten infolge der steigenden Anzahl privater und staatlicher Wirtschaftsakteure aus immer mehr Ländern, die unterschiedliche institutionelle Spielregeln haben, und wegen der immer stärker differenzierten Güter- und Dienstleistungsmärkte in der Welt zweifellos komplexer geworden. Dies alles verändert aber nicht die Qualität oder Struktur des wirtschaftswissenschaftlichen Erkenntnisproblems, sondern dessen Dimension

A design for a market economy

In most LDCs, the public sector and dirigisme have been allotted a vast, if not dominating, influence over the national economy. As a viable alternative to this widespread trend, the author seeks to develop an economic pattern of development policy based on the principles of market economy

'Answer your names please': a small-scale exploration of teachers technologically mediated 'new lives'

Conducted over a three year period in an English secondary school, this study employs a distributional analysis across three scales to explore Real Time Attendance Registration (RTAR). Ethnographic data, Day and Gu’s teachers’ new lives, and Foucault’s normalisation, are mobilised to investigate how RTAR mediated the key informant’s work. I argue that the teacher in this study faced complex, demanding and normalised conditions emanating from register taking becoming a technology mediated and performativity led activity. I suggest that from examining RTAR, those interested in teachers’ new lives might gain an understanding of how, in the case in point, technology mediated the normalisation of the attendance registration process

Why bother with masterliness?

In this chapter, I draw on an empirical study to discuss how teachers inhabiting different stages of their career trajectories chose to engage with master's level professional development (PD) and masterliness (LaVelle, 2012). I argue that performative agendas in schools have increasingly led to two types of masterly professional development - the Institutional (IPD) and the personal (PPD). I maintain that IPD engagers choose an overt and career focussed model of masterliness and with it the mantra of tools such as Random Controlled Trials. This is in contrast to PPD engagers who saw masterliness as a self reflective, and potentially covert, process and those informants - master’s non-engagers (MNE) - who turned their backs on masterliness completely. I maintain that an examination such as this has implications for the PD practice of teachers, school leaders and policy makers