Purpose:The purpose of this paper is to exhibit the impacts of lease duration and lease break options on the optimal holding period for a real estate asset or portfolio. Methodology/approach: We use a Monte Carlo simulation framework to simulate a real estate assets cash-flows in which lease...

This paper examines the properties of optimal times to sell a diversified real estate portfolio. The portfolio value is supposed to be the sum of the discounted free cash flows and the discounted terminal value (the discounted selling price). According to Baroni et al. (2007b), we assume that...

Using data from financial reorganization plans filed by insolvent Canadian firms, we estimate the discount rate implicit in the unsecured creditor's reorganization decision. Using (HARA) utility functions, we find the implicit monthly discount rate of creditors to be 4.9%, which corresponds to...

This paper aims to show that the accuracy of real estate portfolio valuations can be improved through the simultaneous use of Monte Carlo simulations and options theory. Our method considers the options embedded in Continental European lease contracts drawn up with tenants who may move before...

This paper aims to show that the accuracy of real estate portfolio valuations and of real estate risk management can be improved through the simultaneous use of Monte Carlo simulations and options theory. Our method considers the options embedded in Continental European lease contracts drawn up...

How can we count and list all the Banzhaf or Shapley-Shubik index of power configurations for a given number of players? There is no formula in the literature that may give the cardinal of such a set, and moreover, even if this formula had existed, there is no formula which gives the...

When the number of players is small in a weighted majority voting game, it can occur that one of the players has no influence on the result of the vote, in spite of a strictly positive weight. Such a player is called a “dummy” player in game theory. The purpose of this paper is to...

The purpose of this paper is to analyze the apportionment of seats in intercommunal structures in the Val-d?Oise region. We compare the observed distribution of the seats to a theoretical one obtained with the Webster?s method (or Saint-Laguë?s method). This comparison is made using the most...