Tax Rules and the Sale and Leaseback of Corporate Real Estate

This study examines the effect of the sale and leaseback of corporate real estate on the stock prices of the selling firms. We ask whether the Tax Reform Act of 1986 (TRA 1986) had a negative impact on the market valuation effects of corporate sale and leasebacks. The results of the comparative statics analysis predict that the net present value of the lessee should be negatively related to the tax depreciation recovery life for the lessor and to the marginal ordinary income tax rate of the marginal holder of commercial mortgage debt. However, it should be positively related to the marginal tax rate of the equityholder of the corporate lessee. Changes in the marginal ordinary income tax rates of the lessor and the corporate lessee have an ambiguous effect on the equity value of the corporate lessee. Nevertheless, results of simulation analyses suggest that the relationship between the net present value of the lessee and each of the tax rates of the lessor and corporate lessee is negative. The empirical evidence suggests that subsequent to TRA 1986, the lessee's benefits associated with sale and leaseback transactions have decreased.     

Real Estate Values, Federal Income Taxation, and the Importance of Local Market Conditions

This article develops an income property valuation model that explicitly incorporates the effects of local market conditions. In particular, the model allows real rents to respond to a change in tax law, or to any exogenous shock to the system, with the dynamics of the rent change over time dependent upon current local supply and demand conditions and on the expected rate of economic growth in the local economy. Application of the model to an analysis of reduced capital gain taxation demonstrates that a partial reversal of TRA86's real estate provisions would disproportionately benefit those markets, and related lending institutions, which are most in need of a bolstering of real estate values.     

No excuses: forecasting can be managed

Originally written for manufacturers, the forecasting concepts presented in this article are easily applied to a hospital or health care facility with a supply function or central distribution center. Forecasting can offer a method of managing the control of medical supplies, pharmaceuticals, or maintenance items. A statistical based forecasting approach with seasonality testing could be useful in analyzing patient census data, calculating trends, and then recommending staffing levels. Cost containment and efficiency of operations are priorities in any industry. Forecasting the demand of medical supplies and services in today's hectic health care environment can have a significant effect on both customer service and financial results. The bottom line is happy patients and healthy profits.     

Make giving meaningful: key to development success. Interview by Larry Kofsky

Starting virtually from scratch in 1975, Berkshire Medical Center has built a fund raising success story. Its multi-faceted development program centers around the philosophy that donors must feel their gifts have purpose and are appreciated.     

How interethnic marriages affect the educational attainment of children: Evidence from a natural experiment

The allocation of Moluccan immigrants across towns and villages at arrival in the Netherlands and the subsequent formation of interethnic marriages resemble a natural experiment. The exogenous variation in marriage formation allows us to estimate the causal effect of interethnic marriages on the educational attainment of children from such marriages. We find that children from Moluccan fathers and native mothers have a higher educational attainment than children from ethnic homogeneous Moluccan couples or children from a Moluccan mother and a native father.     

Female Labor Supply: Adoption and the Labor Force Participation Decision

A bstract It is well established that the existence of children in the household reduces female labor force participation. This study seeks to determine if different methods of acquiring children ( adoption versus procreation ) affect participation decisions. Empirical results indicate that, other things being equal, women with one or more adopted children residing in their household are less likely to participate in the labor force than their nonadoptive counterparts.     

A simulation-based methodology for optimization of ambulance service policies

A simulation-based methodology for the evaluation of the emergency ambulance system in the Vancouver, Canada, metropolitan area has been created. Outputs from the simulation of the system are utilized in the creation of the objective function of a branch and bound optimization procedure. The solutions are thus obtained at a significantly lower cost than if only simulation were used. The final solutions were verified by simulation runs.