In this paper, we develop a specific observable symptom of a banking system that underprices the default spread in non-recourse asset-backed lending. Using three different data sets for 18 countries and property types, we find that, following a negative demand shock, the “underpricing”...

We investigate the economics of real estate investment when maintenance of a property enhances neighborhood value. Because a property owner does not recognize this positive externality for his/her neighbor, he/she under-maintains. Smaller properties benefit most from this externality. We show...

Personal preferences and financial incentives make homeownership desirable for most families. Once a family purchases a home they find it impractical (costly) to frequently change their ownership of residential real estate. Thus, by deciding how much home to buy, a family constrains their...

The choice of financing source is particularly difficult for a small firm due to the high uncertainty about future liquidity requirements. We show that the techniques of continuous time arbitrage and stochastic control theory may be used not only to value such firms but also to determine the...

We show that the value maximizing hurdle rate for research and development (R&D) investments among private firms operating in a market setting is less than for conventional investments despite the fact that R&D has development risk. Because development risk arises only during R&D, entrepreneurs...

A clearer, more accurate performance management strategyMeasurement Madnesspresents a level-headed approach to performance management, helping leaders avoid the often-bizarre unintended consequences of KPIs. Using real life examples of measurement gone wrong, this book details how each...

In the context of business processes, it is argued that whilst the operate-processes create competitive advantage, it is the manage-processes, which ensure that competitive advantage is sustained. There are now several frameworks for performance measurement and benchmarking but none of these...

It is a management truism that you cannot manage what you cannot measure. Tomanage knowledge effectively organisations need to understand how to measure theirknowledge management performance against organisational goals.The case study organisation has developed a balanced scorecard, which is...