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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. We apply additive mixed regression models (AMM) to estimate hedonic price equations. Terms of use: Documents in EconStor mayNon-linear effects of continuous covariates as well as a smooth time trend are modeled non-parametrically through P-splines. Unobserved district-specific heterogeneity is modeled in two ways: First, by location specific intercepts with the postal code serving as a location variable. Second, in order to permit spatial variation in the nonlinear price gradients, we introduce multiplicative scaling factors for nonlinear covariates. This allows highly nonlinear implicit price functions to vary within a regularized framework, accounting for district-specific spatial heterogeneity. Using this model extension, we find substantial spatial variation in house price gradients, leading to a considerable improvement of model quality and predictive power.

PurposeThe purpose of this paper is to critically review the German mortgage lending value (MLV) and to adapt it in order to find a new concept that could serve as the basis for an internationally accepted standard for valuations for lending purposes.Design/methodology/approachThe research is based on a critical review of existing practices and literature and applies developments in the area of risk management tools, modern valuation techniques as well as the results of the consultation for Basel II in order to find an improved method.FindingsIt was found that a value‐at‐risk approach and the implementation of simulation helps to understand the concept of MLV. The results also indicate that the German system of calculating the MLV has to be improved.Practical implicationsBanks are in need of tools, reliable instruments and a strong theoretical basis when evaluating their collateral. The valuation of real estate for long‐term loans has always been a problem. This paper indicates a strong basis for the implementation of tools in every day business.Originality/valueValue‐at‐risk concepts and the concepts of maximum/maximum potential loss within a (future) time period have until today not been integrated in the valuation of real estate serving as collateral.

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Purpose -A green agenda has become a growing subject throughout an increasing number of European listed real estate companies over the last decade. The focus on sustainability is presumably not only goodwill or legislation driven but is rather a benefit driven action to achieve an economic surplus. The purpose of this paper is the development of an adequate sustainability definition, the investigation of the effect of a sustainability agenda on a company level, and the identification of possible financial benefits. Design/methodology/approach -This is an explorative qualitative and quantitative study. First, the authors developed a four-bottom-line real estate sustainability agenda in accordance with the guidelines of the European Public Real Estate Association and the Global Reporting Initiative. Second, the study examines 80 European listed real estate companies from 2006 until 2009, and third, the study applies a panel analysis with conditional and unconditional regression techniques. Findings -After classifying firms across different levels of sustainability intensity and quantifying the impact of an intensive green agenda the authors found a positive linkage between a green agenda and a green performance, especially in terms of an increased ability to generate revenues and a decreased level of idiosyncratic stock volatility. As a result, green commitments are not merely altruisms but are economically driven instead. Originality/value -This paper gives, to the authors' knowledge, a first insight of how European real estate listed companies behave in terms of corporate social responsibility. The study contributes to the theoretical literature of corporate sustainable real estate companies by establishing an economic transmission mechanism as well as providing empirical evidence in favour of responsible activities.