An Empirical Test of a Contingent Claims Lease Valuation Model

Despite the importance of leases in the US economy, and the existence of several theoretical lease pricing models, there has been little systematic attempt to estimate these models. This paper proposes a simple no-arbitrage based lease pricing model, and estimates it using a large proprietary data set of leases on several property types. We also define a new measure, the Option-Adjusted Lease Spread, or OALS (analogous to an option’s implied volatility, or a mortgage-backed security’s Option-Adjusted Spread), that allows us to compare leases with different maturities and contract terms on a consistent basis. We find sizeable pricing errors that cannot be explained using interest rates, lease maturity, or information on the options embedded in the contracts. This suggests either that there are significant mispricings in the market for real estate leases, or that lease terms depend heavily on unobservable, property-specific characteristics.

A Rational Model of the Closed-End Fund Discount

The discount on closed-end funds is widely accepted as proof of investor irrationality. We show,however, that a parsimonious rational model can generate a discount that exhibits many of the characteristics observed in practice. The only required features of the model are that managers have (imperfectly observable) ability to generate excess returns; they sign long-term contracts guaranteeing them a fee each year equal to a fixed fraction of assets under management; and they can leave to earn more money elsewhere if they turn out to be good. With these assumptions, time-varying discounts are not an anomaly in a rational world with competitive investors -- they are required.

Human Capital, Bankruptcy and Capital Structure

We derive a firm's optimal capital structure and managerial compensation contract when employees are averse to bearing their own human capital risk, while equity holders can diversify this risk away. In the presence of corporate taxes, our model delivers optimal debt levels consistent with those observed in practice. It also makes a number of predictions for the cross-sectional distribution of firm leverage. Consistent with existing empirical evidence, it implies persistent idiosyncratic differences in leverage across firms. An important new empirical prediction of the model is that, ceteris paribus, firms with more leverage should pay higher wages.

The Effectiveness of State and Local Regulation of Handguns: A Statistical Analysis

One aspect of the continuing debate over weapons control, apart from Constitutional issues, is whether legislation is inherently capable of reducing crime and deaths by shooting. The opponents of increased control, tacitly admitting that empirical evidence is one means for measuring the effect of weapons regulation, have contended that [e]xpert opinion and compelling evidence seem to indicate that the amount or kind of crime in a community is not substantially affected by the relative ease with which a person can obtain a firearm. National Rifle Association of America, The Gun Law Problem 10. In the following study the authors employ data analysis techniques to examine the efficacy of state and municipal controls on handguns. They conclude that many lives would be saved if all states increased their level of control to that of New Jersey, the state having the most stringent gun control laws

The Effectiveness of State and Local Regulation of Handguns: A Statistical Analysis

One aspect of the continuing debate over weapons control, apart from Constitutional issues, is whether legislation is inherently capable of reducing crime and deaths by shooting. The opponents of increased control, tacitly admitting that empirical evidence is one means for measuring the effect of weapons regulation, have contended that [e]xpert opinion and compelling evidence seem to indicate that the amount or kind of crime in a community is not substantially affected by the relative ease with which a person can obtain a firearm. National Rifle Association of America, The Gun Law Problem 10. In the following study the authors employ data analysis techniques to examine the efficacy of state and municipal controls on handguns. They conclude that many lives would be saved if all states increased their level of control to that of New Jersey, the state having the most stringent gun control laws

Self-assembly of ferromagnetic micro/nano-particles with perpendicular magnetic anisotropy

Magnetic particles offer an interesting platform for self-assembly, as their dipolar interactions and response to magnetic fields can be used to drive and manipulate assembly. Many magnetic particles used so far in these applications are quite simple in their properties, such as iron oxide particles or magnetic colloids. To grow the potential of magnetic self-assembly, more complex particles are being developed to increase the complexity and functionality of the assemblies. In this vein, this work has created magnetic particles based on thin films of CoFeB/Pt with perpendicular magnetic anisotropy (PMA) to use for self-assembly. PMA films have been long developed for magnetic recording and computing applications, so they are well understood and optimized. Their high moment and strong anisotropy make them good candidates for a highly directional equilibrium self-assembly system. The particle construction was first optimized in films, looking at both the magnetic and structural properties needed for particles. The particles are then patterned from the film using top-down lithographic methods. Using top down methods, as opposed to the chemical synthesis methods used for most magnetic particles, is what allows the tuneable magnetic film properties to be transferred to particles. Once in liquid, the individual field response and interactions of the particles were analysed, to understand how they would best assemble. Then, the particles were assembled into 1D and 2D structures, which were then manipulated with magnetic fields to understand how these assemblies could be controlled and actuated. Assemblies of 3D structures on chip were also created and observed. These results demonstrate the fundamental assembly capabilities of the system and begin to show how it might be applied in microrobotics or micromachinery.Cambridge Commonwealth, European & International Trus

Coherents for the time: imagery in the comedies of George Chapman

Thesis (Ph.D.)--Boston University.The purpose of this study is to examine the imagery and relationships between imagery and structure in the eight comedies that George Chapman wrote without collaboration. In the first chapter several underlying assumptions are set forth. These concern the appropriateness of formal criticism, the critical neglect of Chapman's adherence in comedy to philosophical as well as artistic decorum, and the significance of his expressed intention of creating ethical "coherents" for his age. The functions of dramatic imagery are classified, and Chapman's awareness of irony and decorum ls indicated by his commentaries on Homeric translations and his early non-dramatic poems. Finally, the usefulness of the commonplace symbolism of Fortune as an index to Chapman's ethical thought and comic structure is advanced in connection with his intellectual inheritance and moral predispositions. The Blind Beggar of Alexandria is shown to belie its apparent merely farcical content by Chapman's consistently ironic manipulation of imagery of the process of"knowing. [truncated