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- Title
- A Method for Determining Optimal Tenant Mix (Including Location) in Shopping Centers.
- Creator
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Allen, Marcus T., Carter, Charles C.
- Abstract / Description
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The article illustrates an optimization program to maximize tenant location within shopping malls taking into consideration the bid rent theory and revised central place theory as the complementary effects present in malls. Topics discussed include the Heifendahl index, a method for determining optimal store location, and the concept of quadratic assignment location.
- Date Issued
- 2012-07-01
- Identifier
- fgcu_ir_000637
- Format
- Citation
- Title
- A Note on the Premiums and Discounts Embedded in VIX Futures Prices.
- Creator
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Allen, Marcus T., Jones, Travis
- Abstract / Description
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This article illustrates the volatile nature of the premiums and discounts embedded in the prices of VIX (Chicago Board Options Exchange Market Volatility Index) futures contracts. The fact that the underlying VIX index cannot be traded leads VIX futures to be priced more on expectations of market participants than on a typical cost-of-carry relationship. As they near expiration, VIX futures, in the aggregate, tend to trade at an increased premium, when trading in contango, and at an...
Show moreThis article illustrates the volatile nature of the premiums and discounts embedded in the prices of VIX (Chicago Board Options Exchange Market Volatility Index) futures contracts. The fact that the underlying VIX index cannot be traded leads VIX futures to be priced more on expectations of market participants than on a typical cost-of-carry relationship. As they near expiration, VIX futures, in the aggregate, tend to trade at an increased premium, when trading in contango, and at an increased discount, when trading in backwardation. In addition, the premium in these contracts tends to peak as the VIX index nears a low, and the discount in the contracts tends to bottom as the index nears a high.
Show less - Date Issued
- 2015-06-01
- Identifier
- fgcu_ir_000635
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- Citation
- Title
- Academic Success Determinants for Undergraduate Real Estate Students.
- Creator
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Allen, Marcus T., Carter, Charles C.
- Abstract / Description
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This study provides some insight into potential determinants of students' academic success by examining gender, age, ethnicity, and performance in two required core knowledge courses as predictors of overall grade point average for a sample of undergraduate real estate students at an AACSB-accredited business school. The results suggest that student performance is significantly related to the grades the students receive in core knowledge courses that are typically taken in the earlier...
Show moreThis study provides some insight into potential determinants of students' academic success by examining gender, age, ethnicity, and performance in two required core knowledge courses as predictors of overall grade point average for a sample of undergraduate real estate students at an AACSB-accredited business school. The results suggest that student performance is significantly related to the grades the students receive in core knowledge courses that are typically taken in the earlier semesters of students' plans of study.
Show less - Date Issued
- 2007-10-01
- Identifier
- fgcu_ir_000632
- Format
- Citation
- Title
- Aging Populations and Master Bedroom Location in Housing.
- Creator
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Allen, Marcus T., Benefield, Justin D., Cain, Christopher L.
- Abstract / Description
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In this study, we analyze the price and time-on-market effects related to the location of the master bedroom within single-family houses. As the "graying" of the U.S. population continues, it seems reasonable to investigate how those demographic changes might impact residential real estate markets. Toward that goal, we analyze sold property data obtained from the multiple listing services of two different markets: one with a relatively younger population and one with a relatively older...
Show moreIn this study, we analyze the price and time-on-market effects related to the location of the master bedroom within single-family houses. As the "graying" of the U.S. population continues, it seems reasonable to investigate how those demographic changes might impact residential real estate markets. Toward that goal, we analyze sold property data obtained from the multiple listing services of two different markets: one with a relatively younger population and one with a relatively older population. The results indicate that houses with the master bedroom located upstairs exhibit a significant discount in both markets, with a larger discount observed in the market with the older population. The results also indicate that houses with upstairs master bedrooms exhibit reduced marketing time in the market with an older population, but that marketing time is unrelated to master bedroom location in the market with a younger population.
Show less - Date Issued
- 2016-01-01
- Identifier
- fgcu_ir_000625
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- Citation
- Title
- An Analysis of Investment Returns to Condominium Flipping: Evidence from South Florida.
- Creator
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Allen, Marcus T., Lusht, Kenneth, Weeks, Henry
- Abstract / Description
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The housing market in South Florida was kiln-hot between 2000 and mid-2006, with a total percent change of approximately 172% in the Federal Housing Finance Agency House Price Index (FHFA HPI) for the Fort Lauderdale-area during this time period. Almost as dramatically as the rising tide lifted house prices, so did the ebbing tide wash away substantial amounts of housing-stored wealth between the mid-2006 peak and mid-2011 trough. During this latter time period, the FHFA HPI for this market...
Show moreThe housing market in South Florida was kiln-hot between 2000 and mid-2006, with a total percent change of approximately 172% in the Federal Housing Finance Agency House Price Index (FHFA HPI) for the Fort Lauderdale-area during this time period. Almost as dramatically as the rising tide lifted house prices, so did the ebbing tide wash away substantial amounts of housing-stored wealth between the mid-2006 peak and mid-2011 trough. During this latter time period, the FHFA HPI for this market experienced a total percentage change of approximately -48%. The purpose of this study is to consider whether or not flippers systematically benefitted from buying and reselling housing units with certain characteristics during the recent housing boom and bust in the South Florida market. This study considers physical characteristics, property value strata, and transaction timing as potential determinants of investment returns to residential condominium flipping in South Florida from June 2005, to June 2007, a time period that includes a distinct housing price peak in June 2006.
Show less - Date Issued
- 2015-10-01
- Identifier
- fgcu_ir_000627
- Format
- Citation
- Title
- An analysis of the price formation process at a HUD auction.
- Creator
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Allen, Marcus T., Swisher, Judith
- Abstract / Description
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This study considers whether auctioned properties sell for different prices than they would bring through private negotiation. After reviewing the procedural aspects of the Department of Housing and Urban Development auctions, the prices of properties sold at one such auction are compared with predicted market values based on assessment ratios for the region to detect any discount or premium. The paper also considers whether the order of sale of the auctioned properties affects observed...
Show moreThis study considers whether auctioned properties sell for different prices than they would bring through private negotiation. After reviewing the procedural aspects of the Department of Housing and Urban Development auctions, the prices of properties sold at one such auction are compared with predicted market values based on assessment ratios for the region to detect any discount or premium. The paper also considers whether the order of sale of the auctioned properties affects observed prices. It was found that sample properties sell at a significant discount relative to predicted market values and that prices ten to increase as the auction proceeds, holding quality of the properties constant.
Show less - Date Issued
- 2000-11-01
- Identifier
- fgcu_ir_000646
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- Citation
- Title
- An Update on Property Rights Compensation Law for Appraisers.
- Creator
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Allen, Marcus T., Carter, Charles C.
- Abstract / Description
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Recently, state property rights compensation statutes have been enacted by public referendums in Oregon and Arizona. These statutes are the most favorable for property owners and most difficult for government entities. The laws are meant to compensate landowners for enactment of government land use regulations that have the effect of stifling development of property. State compensation laws are necessary, because according to constitutional law, just compensation for a regulatory taking only...
Show moreRecently, state property rights compensation statutes have been enacted by public referendums in Oregon and Arizona. These statutes are the most favorable for property owners and most difficult for government entities. The laws are meant to compensate landowners for enactment of government land use regulations that have the effect of stifling development of property. State compensation laws are necessary, because according to constitutional law, just compensation for a regulatory taking only applies when the land use regulation has the effect of making the property practically valueless. While state laws enacted earlier remain relatively straightforward, the recent Oregon and Arizona laws may cause trouble for appraisers in determining value diminution due to land regulation.
Show less - Date Issued
- 2010-04-01
- Identifier
- fgcu_ir_000642
- Format
- Citation
- Title
- Another Look at Effects of “Adults-Only” Age Restrictions on Housing Prices.
- Creator
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Allen, Marcus T., Carter, Charles C., Lin, Zhenguo, Haloupek, William J.
- Abstract / Description
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This study reexamines the price effects of age restrictions on housing prices. Our data cover a period when the housing market is taking a steep downturn. We argue that, when housing prices are falling, seniors are more likely to avoid investing in housing for at least two reasons. First, seniors are relatively more sensitive to their immediate equity loss than younger homeowners, mainly due to the limited remaining lifetime over which they can afford to wait; second, age-restriction acts as...
Show moreThis study reexamines the price effects of age restrictions on housing prices. Our data cover a period when the housing market is taking a steep downturn. We argue that, when housing prices are falling, seniors are more likely to avoid investing in housing for at least two reasons. First, seniors are relatively more sensitive to their immediate equity loss than younger homeowners, mainly due to the limited remaining lifetime over which they can afford to wait; second, age-restriction acts as a luxury good, with seniors not willing to pay for reduction in neighborhood uncertainty, eliminating buyer demand for this segment of the population. If this “larger demand loss” outweighs the positive externality of the reduction in neighborhood uncertainty during the market downturn, we would observe that age-restrictions reduce property values. Using data from Broward County, Florida for the years of 2005–2007, we find a significant discount in residential condominium prices due to age-restrictions. In particular, we find that imposing age-restriction on properties decreases housing prices by 17.9% during the period May 2005 to April 2006, while the discount is worse, 22.7%, during the later period May 2006 to May 2007.
Show less - Date Issued
- 2013-01-01
- Identifier
- fgcu_ir_000615
- Format
- Citation
- Title
- Auctioning The Lazy H Ranch: A case study.
- Creator
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Allen, Marcus T.
- Abstract / Description
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This case study is designed to provide students with an entertaining exposure to the auction mechanism in real estate transactions. Borrowing liberally from an actual real estate auction, the case delves into (a) reasons why a property owner might choose the auction mechanism, (b) strategies the property owner and the auctioneer can use to attempt to maximize auction prices, and (c) the logistics of promoting and conducting a real estate auction. The case addresses several strategic issues...
Show moreThis case study is designed to provide students with an entertaining exposure to the auction mechanism in real estate transactions. Borrowing liberally from an actual real estate auction, the case delves into (a) reasons why a property owner might choose the auction mechanism, (b) strategies the property owner and the auctioneer can use to attempt to maximize auction prices, and (c) the logistics of promoting and conducting a real estate auction. The case addresses several strategic issues commonly used in the real estate auction industry, including "absolute auction," "buyer's premium," "choice groups" and owner financing. In the absolute auction format, the seller agrees to sell the property at the auction without imposing a minimum bid or reservation price. Sellers who agree to this structure bear the risk that the property could sell for a price lower than they would accept through traditional transaction methods, but this risk is offset by the increased number of potential bidders who may interpret the use of the absolute format as a signal of the seller's eagerness to transact.
Show less - Date Issued
- 2003-01-01
- Identifier
- fgcu_ir_000654
- Format
- Citation
- Title
- Changes in Property Tax Progressivity for Florida Homeowners after the "Save Our Homes Amendment.".
- Creator
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Allen, Marcus T., Dare, William H.
- Abstract / Description
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The "Save Our Homes Amendment" (SOHA) to Florida's constitution limits annual increases in the taxable value of a homestead property to 3% or the rate of inflation (whichever is less) as long as the property is owned by the same owner. The amount of property value protected from taxation throughout the state by this amendment has grown to over $246 billion (13.9% of total property value) since the amendment's implementation in 1995. This study tests whether the protection has accrued...
Show moreThe "Save Our Homes Amendment" (SOHA) to Florida's constitution limits annual increases in the taxable value of a homestead property to 3% or the rate of inflation (whichever is less) as long as the property is owned by the same owner. The amount of property value protected from taxation throughout the state by this amendment has grown to over $246 billion (13.9% of total property value) since the amendment's implementation in 1995. This study tests whether the protection has accrued disproportionately over time among homestead property owners, the very group of people the amendment was intended to protect. The results suggest that the amendment has reduced the degree of progressivity in the state's property tax system such that the owners of lower value home properties are shouldering an increasing proportion of the property tax burden relative to the owners of higher value homestead properties. The differential impacts of the SOHA across value ranges of homestead properties are likely attributable to differential appreciation and ownership transfers for higher and lower value homestead properties throughout the state.
Show less - Date Issued
- 2009-01-01
- Identifier
- fgcu_ir_000648
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- Citation
- Title
- Charm Pricing as a Signal of Listing Price Precision.
- Creator
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Allen, Marcus T., Dare, William H.
- Abstract / Description
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Housing listing prices serve as sellers' initial offers in the negotiation process and both the magnitude and the design of listing prices may convey information about sellers' reservation prices. Sellers frequently offer their properties for sale at listing prices that are just below some round price (e.g., $199,900 instead of $200,000). Some researchers have dubbed this strategy "charm pricing." Previous studies of the impact of charm listing prices on transaction prices provide mixed...
Show moreHousing listing prices serve as sellers' initial offers in the negotiation process and both the magnitude and the design of listing prices may convey information about sellers' reservation prices. Sellers frequently offer their properties for sale at listing prices that are just below some round price (e.g., $199,900 instead of $200,000). Some researchers have dubbed this strategy "charm pricing." Previous studies of the impact of charm listing prices on transaction prices provide mixed results, suggesting that the ramifications of the charm pricing strategy are not yet fully understood. This paper presents an empirical investigation of the potential role of charm pricing as a signal of listing price precision or "firmness." The findings indicate that transactions with charm listing prices exhibit significantly smaller discounts than transactions that use non-charm listing prices.
Show less - Date Issued
- 2010-10-01
- Identifier
- fgcu_ir_000640
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- Citation
- Title
- Cyclical Determinants of Brokerage Commission Rates.
- Creator
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Allen, Marcus T., Wiley, Jonathan, Benefield, Justin D.
- Abstract / Description
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This study evaluates the determinants of percentage commission rates in the residential brokerage industry. The model developed here predicts that market share of the brokerage firm, property selling difficulty, and prevailing market conditions influence commission rates. Empirical analysis using a sample of 14,891 condominium transactions from the Fort Lauderdale, Florida area provides support for the model’s predictions.
- Date Issued
- 2014-01-01
- Identifier
- fgcu_ir_000617
- Format
- Citation
- Title
- Determinants of dividend policies for ADR firms.
- Creator
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Allen, Marcus T., Perretti, Gizelle, Weeks, Henry
- Abstract / Description
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Cross-listed firms may face unique incentives for establishing dividend policies in comparison to US firms. This study aims to test the implications of the lifecycle and signaling theories of dividend policy in the context of non-US firms cross-listed on US stock exchanges via American depository receipts (ADRs). Design/methodology/approach - ADRs are classified according to the firms' dividend paying histories as regular payers, non-payers, former payers, new payers and switchers....
Show moreCross-listed firms may face unique incentives for establishing dividend policies in comparison to US firms. This study aims to test the implications of the lifecycle and signaling theories of dividend policy in the context of non-US firms cross-listed on US stock exchanges via American depository receipts (ADRs). Design/methodology/approach - ADRs are classified according to the firms' dividend paying histories as regular payers, non-payers, former payers, new payers and switchers. Multinomial logit regressions measure the likelihood of dividend payers to pay dividends, as well as the possibility of a dividend amount increase, decrease, or no change, based upon previously identified determinants of dividend payments and a measure of economic conditions in the home country. Findings - The results indicate that firm size, growth opportunities, and the mix of earned and contributed capital partially explain observed dividend policies for ADR firms. Multinomial logit regressions reveal profitability and home-country macro-economic conditions significantly affect ADR firms' decisions to change their dividend policies. Originality/value - The findings suggest macro-economic conditions affect dividend payment changes among ADR firms. The results also imply that the lifecycle and catering theories may help explain dividend changes among ADR firms.
Show less - Date Issued
- 2013-12-01
- Identifier
- fgcu_ir_000636
- Format
- Citation
- Title
- Determinants of Earnest Money Amounts in Real Estate Sell/Buy Contracts.
- Creator
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Allen, Marcus T., Weeks, Henry, Jones, Travis
- Abstract / Description
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In this study, we examine the factors that may influence the amount of earnest money deposits in real estate sell/buy contracts using contingent claims analysis within the Black-Scholes option pricing model, along with control variables for market trends and market customs. We find that earnest money amounts increase with property values, contract term, and property value volatility, and that earnest money amounts decrease with the risk-free rate. The data for the analysis come from HUD-1...
Show moreIn this study, we examine the factors that may influence the amount of earnest money deposits in real estate sell/buy contracts using contingent claims analysis within the Black-Scholes option pricing model, along with control variables for market trends and market customs. We find that earnest money amounts increase with property values, contract term, and property value volatility, and that earnest money amounts decrease with the risk-free rate. The data for the analysis come from HUD-1 Settlement Statements and the local MLS database for 670 residential real estate transactions.
Show less - Date Issued
- 2014-01-01
- Identifier
- fgcu_ir_000629
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- Citation
- Title
- Differential Bargaining Power in Real Estate Transactions.
- Creator
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Allen, Marcus T., Fraser, Steven, Swaleheen, Mushfiq
- Abstract / Description
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Harding Rosenthal, and Sirmans examine data from the American Housing Survey and demonstrate that it is possible to uncover bargaining power effects in housing market transactions related to demographic attributes of sellers and buyers (age, education level, gender, marital status, race, etc.) included in that database. Colwell and Munneke3 extend this approach to commercial real estate assets (office properties) and find that bargaining power effects can be uncovered by considering types of...
Show moreHarding Rosenthal, and Sirmans examine data from the American Housing Survey and demonstrate that it is possible to uncover bargaining power effects in housing market transactions related to demographic attributes of sellers and buyers (age, education level, gender, marital status, race, etc.) included in that database. Colwell and Munneke3 extend this approach to commercial real estate assets (office properties) and find that bargaining power effects can be uncovered by considering types of sellers and buyers (individuals, corporations, and financial institutions) without knowledge of their specific attributes that often are difficult to measure or observe for samples large enough for reliable statistical analysis.
Show less - Date Issued
- 2016-10-01
- Identifier
- fgcu_ir_000626
- Format
- Citation
- Title
- Discounts in real estate auction prices: Evidence from South Florida.
- Creator
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Allen, Marcus T.
- Abstract / Description
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This study provides a detailed look at the mechanics of the auctions from the Department of Housing and Urban Development and demonstrates how auction prices may differ significantly from non-auction prices for the same properties. The results confirm the general notion that, on average, auction properties sell for less than market value, but also show that the discounts may vary significantly across markets.
- Date Issued
- 2001-01-01
- Identifier
- fgcu_ir_000645
- Format
- Citation
- Title
- Do the Phrases "Below Market Value" or "Below Appraised Value" in MLS Listings Convey Useful Information to the Market?.
- Creator
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Allen, Marcus T., Carter, Charles C.
- Abstract / Description
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Property sellers and their agents sometimes use the phrases "below market value" and "below appraised value" in marketing efforts for their properties. This study questions whether or not there are price and/or time-on-market effects associated with these phrases. The findings indicate that both phrases convey useful information to the market and are not mere puffery in MLS listings. The phrase "below market value" leads to lower transaction prices of approximately 7% and the phrase "below...
Show moreProperty sellers and their agents sometimes use the phrases "below market value" and "below appraised value" in marketing efforts for their properties. This study questions whether or not there are price and/or time-on-market effects associated with these phrases. The findings indicate that both phrases convey useful information to the market and are not mere puffery in MLS listings. The phrase "below market value" leads to lower transaction prices of approximately 7% and the phrase "below appraised value" leads to lower transaction prices of approximately 3%. The results reveal no significant time-on-market effect for the phrases "below market value" or "below appraised value."
Show less - Date Issued
- 2010-01-01
- Identifier
- fgcu_ir_000639
- Format
- Citation
- Title
- Does the Performance on Principles of Economics Courses Affect the Overall Academic Success of Undergraduate Business Majors?.
- Creator
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Allen, Marcus T., Rhodd, Rupert G., Schrouder, Sandra M.
- Abstract / Description
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Using a sample of 1,339 graduates from an accredited business school and the maximum likelihood technique, this paper explores the relationship between overall academic success and performance on the Principles of Economics courses. The estimated model, which also includes some demographic variables, shows that the rank of professors teaching the course, age of students, and the number of credits earned do not influence business majors’ overall academic success. However, the grades earned on...
Show moreUsing a sample of 1,339 graduates from an accredited business school and the maximum likelihood technique, this paper explores the relationship between overall academic success and performance on the Principles of Economics courses. The estimated model, which also includes some demographic variables, shows that the rank of professors teaching the course, age of students, and the number of credits earned do not influence business majors’ overall academic success. However, the grades earned on the Principles of Economics courses, gender, ethnicity, the major in which the student is enrolled, the number of years the student takes to graduate, as well as whether or not the student is completing a minor significantly affect the overall academic success or the final GPA of business majors.
Show less - Date Issued
- 2009-08-01
- Identifier
- fgcu_ir_000647
- Format
- Citation
- Title
- Evaluating Co-Author Contributions in Real Estate Research.
- Creator
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Allen, Marcus T., Dare, William H.
- Abstract / Description
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Non-alphabetic ordering of author names in co-authored articles may signal that the contribution of effort is not equal for all authors in a given research paper. This study analyzes influences on author name ordering in articles published in three real estate research publications: Real Estate Economics, Journal of Real Estate Finance and Economics, and Journal of Real Estate Research. The results indicate that the probability of non-alphabetic author name ordering varies by journal, article...
Show moreNon-alphabetic ordering of author names in co-authored articles may signal that the contribution of effort is not equal for all authors in a given research paper. This study analyzes influences on author name ordering in articles published in three real estate research publications: Real Estate Economics, Journal of Real Estate Finance and Economics, and Journal of Real Estate Research. The results indicate that the probability of non-alphabetic author name ordering varies by journal, article length, number of authors, overall productivity of the authors, and whether at least one author is affiliated with a European institution. These findings may prove useful in the evaluation of authors' professional achievement and influence in the real estate research arena by evaluators who are attempting to interpret the information content (if any) of the ordering of authors' names on real estate research articles.
Show less - Date Issued
- 2009-01-01
- Identifier
- fgcu_ir_000631
- Format
- Citation
- Title
- Factors Influencing Interest Rates on Delinquent Property Tax Certificates.
- Creator
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Allen, Marcus T., Faircloth, Sheri, Nejadmalayeri, Ali
- Abstract / Description
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This study examines the market for delinquent property tax certificates, a commonly used enforcement mechanism in property tax systems around the United States. We model the value of such certificates using a continuous-time framework and propose a statistical model that allows testing for factors that affect interest rates charged by investors who purchase the certificates as investment instruments. Using sample data from tax certificate sales in Florida from 1982 to 2000, we find that...
Show moreThis study examines the market for delinquent property tax certificates, a commonly used enforcement mechanism in property tax systems around the United States. We model the value of such certificates using a continuous-time framework and propose a statistical model that allows testing for factors that affect interest rates charged by investors who purchase the certificates as investment instruments. Using sample data from tax certificate sales in Florida from 1982 to 2000, we find that interest rates on certificates are negatively and significantly related to assessed property value and homestead status, and positively related to local ownership. We find an inverse relationship between interest rates and the number of certificates purchased by the certificate investor, indicating a significant clientele effect in this market. We also find that the implied effective tax rate is positively related to the interest rates charged by investors. Overall, the findings provide insight into the function of this unique market niche.
Show less - Date Issued
- 2004-01-01
- Identifier
- fgcu_ir_000620
- Format
- Citation