We analyzes the optimal asset allocation problem for life insurers that are required to cope with significant background risks originating from life insurance businesses among a set of stochastic investment opportunities including foreign equities. The insurer is assumed to maximize the expected...

Analyses of risk-bearing often assume that agents face only one risk. Agents however usually face several risks and the interaction between them can affect the willingness to bear any one of them. We consider how the introduction of background risk affects the comparative statics predictions of...

Purpose – The purpose of this paper is to empirically analyze the relationship between risky asset allocation and background risk of Chinese residents. Design/methodology/approach – Using Chinese macroeconomic data, this study uses numerical method to solve dynamic stochastic optimal...

Summary In hedonic pricing models there is often prior knowledge available which has the form of interval constraints on the unknown coefficients. These are stemming for example from considerations of submarkets for the characteristics involved. In this article we briefly discuss some well known...

Purpose – The paper aims to estimate the effect of energy efficiency on the Market Value of office buildings and consider whether this effect increases over time. Design/methodology/approach – The authors analyze a dataset of office building valuations from 2009 to 2011, provided by the...

Purpose – Belfast's “peace walls” exist to physically segregate and provide a measure of security to the communities on the religious divide in Northern Ireland. Whilst they do ostensibly achieve this aim, it may well be that these structures have the capacity to prevent the restoration of...

Purpose In this study the authors aim to outline new ways of information extraction for automated valuation models, which in turn would help to increase transparency in valuation procedures and thus contribute to more reliable statements about the value of real estate....

Purpose – This paper aims to analyze the effect of floor level on condominium prices in San Diego, California. The authors determine whether “higher‐floor premiums” exist in the condominium market for a large California city. Further, they investigate how the floor premium varies...

Purpose Focusing on the externality effects of historic districts, this paper aims to assess and compare the impact of historic district designation on the value of residential vacant land property. Design/methodology/approach Hedonic regression is used to analyze data from 4,233 residential...

Purpose – This study aims to examine whether and how hotel class, attributes of the room, quality, location, cleanliness, and service influence room rates in hotels. Design/methodology/approach – Regression models were developed for the hotel industry and for various grades of hotels....