Discount Point Concessions: Reply and Further Evidence

Discount Point Concessions: Reply and Further Evidence Journal of Real Estate Finance and Economics, 19:3, 263±265 (1999) # 1999 Kluwer Academic Publishers, Boston. Manufactured in The Netherlands. Discount Point Concessions: Reply and Further Evidence PAUL K. ASABERE, FORREST E. HUFFMAN School of Business and Management, Temple University, Philadelphia, PA Professor Clauretie raises a number of points in his comments on our article (Asabere and Huffman, 1997). Our replies follow: (1) Professor Clauretie correctly notes that our illustration of the tax effects of points should be calculated as 28 percent of the value of the deductible points rather than by using …1ÿ 0.28†. Using the correct method generates a tax savings of $896, not our $2,304. Thus the total bene®t in Table 1 (Asabere and Huffman, 1997, p. 263) is $4,712 and not our $6,120. We regret this error. It must be noted, however, that the objective of Table 1 is to af®rm that there are potential cash bene®ts over the ``classic'' case. The amounts illustrated in Table 1 are not indicative of our data. The illustration has no effect, nor is it affected by our empirical results in any way whatsoever. (2) A second, more interesting, issue raised by Professor Clauretie is that our illustration in http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png The Journal of Real Estate Finance and Economics Springer Journals

Discount Point Concessions: Reply and Further Evidence

Loading next page...
 
/lp/springer_journal/discount-point-concessions-reply-and-further-evidence-RIB7kz39DO
Publisher
Kluwer Academic Publishers
Copyright
Copyright © 1999 by Kluwer Academic Publishers
Subject
Economics; Regional/Spatial Science; Financial Services
ISSN
0895-5638
eISSN
1573-045X
D.O.I.
10.1023/A:1007840829061
Publisher site
See Article on Publisher Site

Abstract

Journal of Real Estate Finance and Economics, 19:3, 263±265 (1999) # 1999 Kluwer Academic Publishers, Boston. Manufactured in The Netherlands. Discount Point Concessions: Reply and Further Evidence PAUL K. ASABERE, FORREST E. HUFFMAN School of Business and Management, Temple University, Philadelphia, PA Professor Clauretie raises a number of points in his comments on our article (Asabere and Huffman, 1997). Our replies follow: (1) Professor Clauretie correctly notes that our illustration of the tax effects of points should be calculated as 28 percent of the value of the deductible points rather than by using …1ÿ 0.28†. Using the correct method generates a tax savings of $896, not our $2,304. Thus the total bene®t in Table 1 (Asabere and Huffman, 1997, p. 263) is $4,712 and not our $6,120. We regret this error. It must be noted, however, that the objective of Table 1 is to af®rm that there are potential cash bene®ts over the ``classic'' case. The amounts illustrated in Table 1 are not indicative of our data. The illustration has no effect, nor is it affected by our empirical results in any way whatsoever. (2) A second, more interesting, issue raised by Professor Clauretie is that our illustration in

Journal

The Journal of Real Estate Finance and EconomicsSpringer Journals

Published: Sep 30, 2004

References

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 12 million articles from more than
10,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Unlimited reading

Read as many articles as you need. Full articles with original layout, charts and figures. Read online, from anywhere.

Stay up to date

Keep up with your field with Personalized Recommendations and Follow Journals to get automatic updates.

Organize your research

It’s easy to organize your research with our built-in tools.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve Freelancer

DeepDyve Pro

Price
FREE
$49/month

$360/year
Save searches from
Google Scholar,
PubMed
Create lists to
organize your research
Export lists, citations
Read DeepDyve articles
Abstract access only
Unlimited access to over
18 million full-text articles
Print
20 pages/month
PDF Discount
20% off