Did Saving Wall Street Really Save Main Street? The Real Effects of TARP on Local Economic Conditions

2017 ◽  
Vol 52 (5) ◽  
pp. 1827-1867 ◽  
Author(s):  
Allen N. Berger ◽  
Raluca A. Roman
Keyword(s):  
Real Estate ◽  
Balance Sheet ◽  
Cost Benefit ◽  
Commercial Real Estate ◽  
Economic Conditions ◽  
Wall Street ◽  
Real Effects ◽  
Main Street ◽  
Recent Financial Crisis ◽  
The Cost

We investigate whether saving Wall Street through TARP really saved Main Street during the recent financial crisis. Our difference-in-difference analysis suggests that TARP statistically and economically significantly increased net job creation and net hiring establishments and decreased business and personal bankruptcies. The results are robust, including accounting for endogeneity. The main mechanisms driving the results appear to be increases in commercial real estate lending and off-balance-sheet real estate guarantees. These results suggest that saving Wall Street via TARP may have helped save Main Street, complementing the TARP literature and contributing to the cost–benefit debate.

MUTUALLY EXCLUSION OF PROJECTS OF DIFFERENT VALUES BY THE BENEFIT-COST METHOD

2021 ◽  
Vol 6 (16) ◽  
pp. 230-237
Author(s):  
Murat KAYA
Keyword(s):  
Cost Benefit ◽  
Cash Flows ◽  
Economic Life ◽  
Economic Conditions ◽  
Ratio Method ◽  
The World ◽  
Cost Benefit Ratio ◽  
The Cost ◽  
Benefit Cost

The recovery of an investment is very important in the world of economy. While businesses are preparing long-term projects for investment purposes, basic criteria such as changing economic conditions, risks, cash flows of the project, discount rate to be applied, economic life should be estimated in advance. For this reason, businesses prepare different projects that can provide the same economic conditions for the projects they prepare. In order to compare these projects, a cost-benefit table is prepared and evaluated in terms of their advantages. In line with these values, it is ensured that the most correct project is selected by eliminating each other. In this study, the cost-benefit ratio method was applied to three different projects. For all three projects, 10% annual interest and numerical values between 15 and 60 years of life are given. As a result of the evaluation of the projects, the most suitable project was determined by eliminating each other. Cash flows are calculated based on present and annual equivalents.

Collateral Damage: Effects of the Japanese Bank Crisis on Real Activity in the United States

2000 ◽  
Vol 90 (1) ◽  
pp. 30-45 ◽  
Author(s):  
Joe Peek ◽  
Eric S Rosengren
Keyword(s):  
United States ◽  
Real Estate ◽  
Economic Activity ◽  
The United States ◽  
Commercial Real Estate ◽  
Real Activity ◽  
Real Estate Markets ◽  
Real Effects ◽  
Supply Shock ◽  
Loan Supply

The Japanese banking crisis provides a natural experiment to test whether a loan supply shock can affect real economic activity. Because the shock was external to U.S. credit markets, yet connected through the Japanese bank penetration of U.S. markets, this event allows us to identify an exogenous loan supply shock and ultimately link that shock to construction activity in U.S. commercial real estate markets. We exploit the variation across geographically distinct commercial real estate markets to establish conclusively that loan supply shocks emanating from Japan had real effects on economic activity in the United States. (JEL E44, F36)

scholarly journals About new aspects of the development of the market of mini apartments in Ukraine

2020 ◽  
Vol 166 ◽  
pp. 09002 ◽  
Author(s):  
Sergiy Kobzan ◽  
Sergiy Nesterenko
Keyword(s):  
Real Estate ◽  
Urban Development ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
World Market ◽  
Real Estate Market ◽  
The Real ◽  
The Real Estate ◽  
The Real Estate Market ◽  
The Cost

The article discusses the issues of a new segment of the real estate market in urban development projects. The analysis of the world market of mini apartments is made. The questions of residence of various social groups in mini apartments are raised. The classification of mini apartments has been developed. The factors significantly affecting the cost of a mini apartment are investigated. The calculation of the analysis of benefits and costs for a mini apartment. Conclusions are drawn about the mini-apartment market in urban development. The research of mini-apartments’ market reflects changes in the development of the whole urban infrastructure. The market of mini-apartments influences on the real estate region’s market. The distinctive characteristics of mini-apartments in different regions are based on their classification. The mini-apartments’ market in different regions is analyzed. The authors constructed GIS-map. GIS analysis shows the dependence of the cost of mini apartments from the region of Ukraine. Calculation of the profitability of mini apartments was carried out using the method of market extraction (market sampling). Using the method of market extraction (market sampling), the income from mini apartments was calculated. Cost benefit analysis shows the aspects of the mini apartments’ market for the urban development.

Approaches to the assessment of the hotel business market value: practical aspects

Servis plus ◽  
10.12737/3898 ◽  
2014 ◽  
Vol 8 (2) ◽  
pp. 85-91
Author(s):  
Анна Ларионова ◽  
Anna Larionova
Keyword(s):  
Real Estate ◽  
Cash Flows ◽  
Real Estate Market ◽  
Commercial Real Estate ◽  
Comparative Approach ◽  
Inventory Costs ◽  
Management Quality ◽  
Application Potential ◽  
The Cost ◽  
Evaluation Approaches

The article considers the applicability of the comparative, income/capitalization, and cost approaches to hotel business evaluation. The author conducts research into the current trends that the market of commercial real estate demonstrates, paying special attention to transactions in Moscow´s hotel real estate market, and describes the application of the transaction and the price-animator method with reference to the hotel business specifics. As part of the research, the author calculates the values of such price animators as «hotel´s price rates/number of rooms», «price/revenue», «price/net profit», and identifies standard components used for amendments in the framework of the comparative approach. Among the components are scope of interest in land and real estate, hotel brand, hotel capacity and location, management quality, availability and lifecycle of additional divisions, investor´s aftersales reconstruction and inventory costs, sales terms (closing term, procurement of funds). On the basis of an assessment of the discounted cash flows, the author demonstrates the necessity of applying the income/capitalization approach, considers the limitations of the cost approach to evaluating a hotel business occupying an architecturally unique building, defines the advantages and drawbacks of the above-mentioned evaluation approaches as well as their application potential, and substantiates that the quality of evaluation depends on a comprehensive consideration of the specifics of the hotel industry.

On the Relationship between Market Sentiment and Commercial Real Estate Performance—A Textual Analysis Examination

2019 ◽  
Vol 41 (4) ◽  
pp. 605-637 ◽  
Author(s):  
Eli Beracha ◽  
Marcel Lang ◽  
Jochen Hausler
Keyword(s):  
Real Estate ◽  
Textual Analysis ◽  
The United States ◽  
Real Estate Market ◽  
Commercial Real Estate ◽  
Wall Street ◽  
Related Factors ◽  
Market Sentiment ◽  
Bidirectional Relationship ◽  
The Wall Street Journal

We examine whether and the extent to which news-based sentiment, captured by textual analysis, can predict the performance of the private commercial real estate market in the United States. Our results show that sentiment reflected in news abstracts of The Wall Street Journal predicts returns of commercial real estate up to four quarters in advance. These findings are statistically significant and persist even when controlling for other related factors. This suggests that news-based sentiment can serve as an early market indicator. We are the first to examine the bidirectional relationship between sentiment, measured by textual analysis, and the performance of the private U.S. commercial real estate market. The findings contribute to the academic literature, and carry practical implications for real estate professionals.

Preparing for an Uncertain Future

2021 ◽  
pp. 141-167
Author(s):  
Daniel R. Garodnick
Keyword(s):  
Real Estate ◽  
Credit Rating ◽  
Commercial Real Estate ◽  
Purchase Price ◽  
Wall Street ◽  
Operating Income ◽  
Credit Rating Agency ◽  
Rating Agency ◽  
High Profile ◽  
Uncertain Future

This chapter discusses the report of the Wall Street Journal about Stuyvesant Town, one of the biggest, most high-profile deals of the commercial real-estate boom, being in danger of imminent default. It explains how Tishman Speyer was stuck at $139 million rather than raising the net operating income up to $252 million by 2009, which MetLife had promised could be done. It also mentions RealPoint LLC, a credit-rating agency that estimated the property to only be worth $2.1 billion — less than half the purchase price from the time it has been purchased in 2006. The chapter focuses on the impacts of the recession to Tishman Speyer and all owners of real-estate, which had been precipitated by a collapse in the inflated housing market. It refers to apartment prices in Manhattan that had fallen sharply as 2009 wore on and prices that went down by 25 percent compared to 2008.

Dispossession

2018 ◽  
Author(s):  
Michael Levien
Keyword(s):  
Real Estate ◽  
Knowledge Economy ◽  
Commercial Real Estate ◽  
World City ◽  
Direct Access ◽  
Water Shortages ◽  
The Cost ◽  
The Village ◽  
Means Of Production

This chapter examines the dispossession of Rajpura for the Mahindra World City. It shows, first, how the Rajasthan government used real estate to produce compliance to dispossession. It then examines the initial consequences of this dispossession for both the village and the SEZ’s investors. Dispossession enabled Mahindra to arbitrage on the discrepancy between the cost of dispossessed land and its ultimate value as residential and commercial real estate, and to establish a tax-free enclave for India’s already booming “knowledge economy.” Conversely, it generated a cascading disaccumulation of agrarian assets within Rajpura. Dispossession undermined direct access to means of production and subsistence, destroyed a remunerative livestock economy, worsened already acute water shortages, and imposed disproportionate costs on women. It was against these substantial losses that Rajpura’s villagers weighed any gains from the SEZ.

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