THE ECONOMIC WELL-BEING OF THE ELDERLY

Estimating the elderly's relative economic well-being is of policy importance, but the procedure poses several technical problems. We propose a methodology for such comparison and present results from its application. Household income of persons is adjusted for household size, underreporting of unearned income, and the annuitized value of assets. By this measure, the elderly are on average 124 percent as well off as the nonelderly. Their households are on average 183 percent as well off as those of children under 6. Inequality is greater than at any other age and increases further for those over 75.     

Capital Asset Pricing and Real Estate Valuation*

This paper examines the Capital Asset Pricing Model with respect to its implications for real estate investment analysis and appraisal. The derivation of the CAPM, and theoretical problems with it, are discussed, along with its empirical validation. The similarities and differences between real estate and securities markets are evaluated. Alternative models to the CAPM are presented, followed by the conclusions.     

MARKET TIMING AND MUTUAL FUND PORTFOLIO COMPOSITION

This study uses a methodology that is independent of beta estimates to provide empirical evidence on the success of market timing by mutual fund managers. A fund's success at market timing is evaluated by determining if the percentage of the portfolio invested in stocks increases prior to an upturn in the general level of stock market prices and declines prior to a downturn in the level of stock prices. No evidence is found that managers possess, as a group, any market timing ability.     

A NOTE ON VICKERS' MARGINAL COST OF DEBT CAPITAL

Douglas Vickers has written extensively on the concept of the marginal cost of debt capital. His defmition is shown to be ambiguous and his derivation rather unusual. This paper points out the problems in his work and derives a conventional marginal cost of debt.