Open Access. Powered by Scholars. Published by Universities.®
Social and Behavioral Sciences Commons™
Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 4 of 4
Full-Text Articles in Social and Behavioral Sciences
On Using Interval Response Data In Experimental Economics, James Mcdonald, Olga B. Stoddard, Daniel Walton
On Using Interval Response Data In Experimental Economics, James Mcdonald, Olga B. Stoddard, Daniel Walton
Faculty Publications
Many empirical applications in the experimental economics literature involve interval response data. Various methods have been considered to treat this type of data. One approach assumes that the data correspond to the interval midpoint and then utilizes ordinary least squares to estimate the model. Another approach is to use maximum likelihood estimation, assuming that the underlying variable of interest is normally distributed. In the case of distributional misspecification, these estimation approaches can yield inconsistent estimators. In this paper, we explore a method that can help reduce the misspecification problem by assuming a distribution that can model a wide variety of …
The Use Of Securities Data In Determining Discount Rates For Real Property, Hal B. Heaton
The Use Of Securities Data In Determining Discount Rates For Real Property, Hal B. Heaton
Faculty Publications
When the income approach is used to value real property, appraisers forecast anticipated cash flows from the property and discount those cash flows to arrive at a present value. To do this, appraisers must determine an appropriate rate for discounting the future cash flows. Market value is usually defined as the price between a willing buyer and a willing seller. Appraisers therefore should study the market for the type of properties involved to determine the discount rates used by buyers and sellers of those properties in actual transactions.
On The Use Of Size Premiums, Arithmetic Or Geometric Average Returns, And Liquidity Premiums In Determining Discount Rates, Hal B. Heaton
On The Use Of Size Premiums, Arithmetic Or Geometric Average Returns, And Liquidity Premiums In Determining Discount Rates, Hal B. Heaton
Faculty Publications
In recent court cases, a number of technical issues have arisen in determining appropriate discount rates for use in the discounted cash flow approach to valuation. This article examines three issues, reviews the literature about the issues, and summarizes the key considerations.
Determining Discount Rates For Valuing Properties In Distressed Industries, Hal B. Heaton
Determining Discount Rates For Valuing Properties In Distressed Industries, Hal B. Heaton
Faculty Publications
This study addresses the procedure for determining discount rates for properties in industries under stress. A simple example with fixed and variable costs, which could represent a company in any of these industries, is used to demonstrate the difficulties of using standard approaches for estimating cost of capital.