This paper challenges the belief that accelerated depreciation methods are always superior to the straight-line method-especially for low-tax bracket owners of highly leveraged investments who have prospects for income growth. The root of the problem is our highly progressive income tax...

This paper develops a pricing model for commercial real estate mortgage debt that recognizes the influence of default transaction costs on the borrower's default decision. These costs are heterogeneous across borrowers and largely un-observable to the lender/investor at the time of origination...