The return on investment has been considered in its two main aspects - rent yield and capital gains as a difference between the purchase and sale prices of the real estate. Four basic criteria have been used to evaluate both the returns on rent and re-sale of the real estate. Prospects of the...

Examined are the main factors influencing the increased demand for residential property as main accelerator of their price increase. Special attention is focused on the significant increase in residential mortgage credits due to the more advantageous loan conditions and the improved acquittal...

Examined are the main factors influencing the increased demand for residential property as a main accelerator of the price increase. Special attention is focused on the significant increase of residential mortgage credits due to the more advantageous loan conditions and the improved acquittal...

This paper examines the role of government guarantees to domestic banks in generating moral hazard in pre-crisis East Asian economies. We test for moral hazard among bank creditors by determining whether protected banks received more funds from creditors than otherwise identical banks that did...

Bank regulators are required to consider a bank's record of providing credit to low- and moderate-income neighborhoods and individuals in approving bank applications for mergers and acquisitions. We provide evidence that banks self-regulate by strategically increasing their lending to these...

This paper presents evidence of banks using accounting discretion to overstate the value of distressed assets. In particular, we show that the stock market applies far greater discounts to a bank’s real estate loans and mortgage-backed securities than are implicit in the book values of these...

We consider the debt capacity of a risky asset when debt is being rolled over and there is a liquidation cost in case of default. We show that debt capacity depends on how information about the quality of the asset is revealed. When the information structure is based on “optimistic”...

Systemic risk is modeled as the endogenously chosen correlation of returns on assets held by banks. The limited liability of banks and the presence of a negative externality of one bank’s failure on the health of other banks give rise to a systemic risk-shifting incentive where all banks...

Fire sales that occur during crises beg the question of why sufficient outside capital does not move in quickly to take advantage of fire sales, or in other words, why outside capital is so slow-moving. We propose an answer to this puzzle in the context of an equilibrium model of capital...

Exploiting the Japanese banking crisis of the 1990s as a laboratory, we investigate the effects of bank bailouts on the supply of credit and the performance of banks’ clients. Our findings indicate that the size of capital injections relative to the initial financial condition of banks is...