Ambrose, Brent W.; Hendershott, Patric H.; Klosek, … - National Bureau of Economic Research (NBER) - 2000
This paper presents a stochastic pricing model of a unique, path-dependent lease instrument common in the United Kingdom and numerous commonwealth countries, the upward-only adjusting lease. In this lease, the rental rate is fixed at lease commencement but will be reset to the market rate at...