Optimal Comparable Selection and Weighting in Real Property Valuation: An Extension

Vandell (1991) recently developed a rigorous minimum variance technique for selecting and weighting comparables in real estate appraisal. This article extends Vandell's methodology in three areas: (1) an alternative objective function; (2) an approach that explicitly recognizes the non-negativity constraint on comparable weights; and, (3) a more robust comparable inclusion process. Using Vandell's data, we show how our methodology modifies Vandell's results.     

Collaborative tax evasion and social norms: why deterrence does not work

This paper makes a preliminary attempt to model a phenomenonof collaborative tax evasion between a seller and his customerand incorporates the social norm into such collusive tax-evadingactivities. It is found that, due to the existence of the socialnorm, more prevalent collaborative tax evasion at the statusquo tends to intensify the extent of the tax evasion itself;this thus furnishes a self-fulfilling equilibrium and it mayalso give rise to multiple equilibria. More importantly, wefind that the snowballing effect stemming from social norm hasa decisive influence not only in determining the conformityof consumers to the tax code, but also the deterrent effectof the authority's tax enforcement. If collaborative tax evasionis initially rampant, raising fines for tax evasion will giverise to a strong venal effect that will increase tax evasion.Once this perverse effect outweighs the usual deterrent effectassociated with raising fines for tax evasion, a more severefine may result in higher rather than lower tax evasion.     

Corporate Restructuring in Response to Performance Decline: Impact of Ownership, Governance and Lenders

Firms in performance decline may choose a variety of restructuringstrategies for recovery with conflicting welfare implicationsfor different stakeholders such as shareholders, lenders andmanagers. Choice of recovery strategies is therefore determinedby the complex interplay of ownership structure, corporate governanceand lender monitoring of such firms. For a sample of 297 U.K.firms experiencing relative stock return decline during 1987–93,we examine the impact of these factors as well as other controlfactors on their turnaround strategies. Strategy choices duringthe decline year and two post-decline years are modelled withlogit regressions. Our results show that turnaround strategychoices are significantly influenced by both agency and controlvariables. While there is agreement among stakeholders on certainstrategies there is also evidence of conflict of interests amongthem. Thereis further evidence of shifting coalitions of stakeholdersfor or against certain strategies.     

An analysis of private loan guarantees

Loans guaranteed by private parties other than government agencies experienced an explosive growth in the early 1980s. Althoughprivate financial guarantees are widely used, models for valuing them are not well developed. Using option-pricing theory, in a discrete-time framework we obtain closed-form formulas for evaluating private loan guarantees. We conduct numerical simulations and derive comparative statics for vulnerable loan guarantees under different conditions of debt subordination in conjunction with government default-free guarantees.     

PROJECT IMPACT MONITORING: A MISNOMER

The overall record of monitoring and evaluation activities relating to agricultural and rural development projects has been unimpressive. In taking stock of the situation, particular attention must focus on the relevance and place of impact assessment activities. It is suggested that disqualification of the notion, as well as future references to, terms such as impact monitoring, would be beneficial. Whilst certain analytical studies concurrent with project imple-mentation would be necessary, these should not be tantamount to impact evaluation, which has its own time and place. Towards greater clarity on this aspect, a redefinition of the current evaluation terminology is called for. Finally, a number of neglected areas essential for improving monitoring's role in project management are reviewed.     

改善福建投资软环境的对策思考

近年来,福建外商投资的增长幅度有下降的态势,而且省内的许多内资企业也迁往外省。这一问题的出现,与福建省的投资环境尤其是软环境有相当程度的关系。因此,有必要对福建省的投资软环境进行分析,以便采取有效的应对措施。