The optimal filtering techniques were applied to introduce noise into the asset valuation process whereas the real assets have some different traits relative to the financial assets,and then a real options(approach) was applied to analyze the optimal investment decision on noisy real assets.

Real estate development regulatory policy based on noisy real assets

In the preface, we introduce the background of real option, present condition of studying of option problems about real assets and what we are going to do in the paper.

For a co_dimension two bifurcation system on a three_dimensional central manifold, which is parametrically excited by a real noise, a rather general model is obtained by assuming that the real noise is an output of a linear filter system_a zeromean stationary Gaussian diffusion process which satisfies detailed balance condition.

For a real noise parametrically excited co_dimension two bifurcation systems on a three_dimensional central manifold, a model of enhanced generality is developed in the present paper by assuming the real noise to be an output of a linear filter system, namely,a zero_mean stationary Gaussian diffusion process that satisfies the detailed balance condition.

With the aid of the stochastic averaging method,the theory of singular points of diffusion processes and the method of invariant measure, a Hopf bifurcation system in the presence of parametric real noises is studied.