Modeling Financial Surplus of the Housing Projects Developer

Tadeusz Czernik, Daniel Iskra

Abstract

Recent events taking place on the housing project market provide a strong impetus to the study of risk in housing project development. This issue is important not only from the point of view of the developer but also his client. This paper proposes a dynamic model of the financial surplus process. The model takes into account the structure of the credit payments, and the random nature of the real estate sale process (compound Poisson process

Keywords

housing projects development, financial surplus, stochastic modeling, simulations

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https://doi.org/10.5817/FAI2014-3-2

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