We investigate if house prices are affected by overconfidence of households who predict house prices using imperfect public information about economic outlook. For this purpose, we develop a new measure of household overconfidence in the Bayesian framework. For the three variables we test –...

We analyze the effects of a lump sum deposit of a lease contract on residential property returns. According to our pricing model, property returns increase with the deposit to price ratio when interest rate is larger than dwelling benefits. When interest rate becomes lower than the dwelling...

No, it doesn't, despite the general perception that illiquidity matters in real estates. As expected, the illiquidity costs we estimate for the US residential properties are large. They are on average equivalent to 12% of the total property returns, ranging from 9.5% to 29.5% of property prices...

This study is the first to examine whether the performance of credit rating, one of the most important data-based decision-making of banks, can be improved by using system log data that is extensively accumulated inside the bank for system operation. This study uses the log data recorded for the...