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Author: Nadezda Andreevna Kotova Publisher: ISBN: Category : Languages : en Pages :
Book Description
This dissertation studies inefficiencies and riskiness in the US housing market. In Chapter I, coauthored with Anthony Lee Zhang, we study liquidity in residential real estate markets and show that market illiquidity is a key determinant of individual house price risk. In Chapter II, coauthored with Zi Yang Kang, we study how the quality of houses traded in a market evolves in the presence of predictable cyclical changes in market conditions. Chapter III studies how industrial concentration creates risk concentration through amplified pass-through of industry-specific productivity shocks into local house prices, wages, and employment.
Author: Nadezda Andreevna Kotova Publisher: ISBN: Category : Languages : en Pages :
Book Description
This dissertation studies inefficiencies and riskiness in the US housing market. In Chapter I, coauthored with Anthony Lee Zhang, we study liquidity in residential real estate markets and show that market illiquidity is a key determinant of individual house price risk. In Chapter II, coauthored with Zi Yang Kang, we study how the quality of houses traded in a market evolves in the presence of predictable cyclical changes in market conditions. Chapter III studies how industrial concentration creates risk concentration through amplified pass-through of industry-specific productivity shocks into local house prices, wages, and employment.
Author: Yifan Chen Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
This dissertation examines the dynamics between housing prices, firms, and households. The first chapter focuses on sequential information revelation in the housing markets; the second chapter investigates the impact of house price appreciation on the returns of value versus growth firms; the third chapter estimates the effect of gun control on home values. In Chapter 1, I use Amazon's progressive revelation of its new headquarters locations in Virginia and New York to demonstrate that the housing market fully incorporates information about future demand well before disclosure. Spatial difference-in-differences analysis shows that housing prices near the Virginia headquarters exhibit 4.9% premia before Amazon's headquarters decision but no additional increase upon decision. Price premia for New York reach 17.5% before the decision but disappear once Amazon cancels the headquarters. Other finalist cities exhibit no price premia, precluding the possibility of speculation. Overall, this study suggests that the housing market can quickly incorporate private information about future demand shocks. In Chapter 2, I investigate the value-growth premium puzzle by merging insights from urban economics and finance that relate firm location to its stock performance. The value-growth premium in locations with high historical house price appreciation is 3.6% per year larger than the premium in areas that experienced little house price appreciation. The results support investment-based models explaining the value premium; moreover I find the house price channel reduces returns of growth firms rather than increasing returns of value firms. House price appreciation remains significant after controlling for common explanations of the premium. In Chapter 3, using cross-border variation in the timing of state gun control law passage dates, I find that the introduction of universal background checks for gun sales results in a roughly 2.3 percent decline in housing prices on average. I find a more significant decrease in housing prices, i.e., up to 5.3 percent, if the state is neighboring a Republican rather than a Democratic state. This result is robust to several specification tests and does not appear to be associated with neighborhood crime rate changes.
Author: Peter Malpass Publisher: Routledge ISBN: 1135217084 Category : Architecture Languages : en Pages : 447
Book Description
This book of specially commissioned essays by distinguished housing scholars addresses the big issues in contemporary debates about housing and housing policy in the UK. Setting out a distinctive and coherent analysis, it steers a course between those accounts that rely on economic theory and analysis and those that emphasize policy. It is informed by the idea that the 1970s was a pivotal decade in the second half of the twentieth century, and that since that time there has been a profound transformation in the housing system and housing policy in the UK. The contributors describe, analyze and explain aspects of that transformation, as a basis for understanding the present and thinking about the future. The analysis of housing is set within an understanding of the wider changes affecting the economy and the welfare state since the crises of the mid 1970s.
Author: Deeksha Gupta Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
This dissertation is motivated by the housing crisis of 2008. It consists of three chapters. In the first chapter, "Too Much Skin-in-the-Game? The Effect of Mortgage Market Concentration on Credit and House Prices," I propose a new theory to help explain the housing crisis. During the housing boom, a small number of institutions--the government-sponsored enterprises (GSEs) and a few banks--held most of U.S. mortgage risk. I develop a theory in which such concentration of mortgage exposure can explain features of the housing crisis. I show that large lenders with many outstanding mortgages have incentives to extend risky credit to prop up house prices. An increase in concentration can lead to a boom with worsening credit quality and a subsequent bust with widespread defaults. In the second chapter, "Concentration and Lending in Mortgage Markets," joint with Ronel Elul and David Musto, we attempt to test the theory described in the first chapter. We provide evidence that concentration in mortgage markets can create perverse lending incentives. We exploit variation in the size of the GSEs' outstanding mortgage exposure across MSAs. Using a loan-level dataset, we provide evidence that the GSEs were more likely to engage in high-risk activities in areas where they had a large exposure to outstanding mortgages. We also provide evidence that this relationship is driven by an incentive to keep house prices high. In the final chapter, "Housing Booms and the Crowding-Out Effect," joint with Itay Goldstein, we study the effect that investment in real estate assets has on the economy. We develop a theory in which housing price booms can sometimes lead to a crowding-out of corporate investment. We show that an increase in real estate prices does not necessarily increase aggregate investment even when firms actively use real estate assets as collateral to borrow against and invest the proceeds in positive NPV projects. We argue that at times, it can be optimal to decrease the price of housing rather than to support high housing prices to stimulate the economy and characterize when this is the case.
Author: Boaz Abramson Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
This dissertation studies the macroeconomic implications of government policies and house- hold decisions for housing market outcomes. The first chapter, "The Welfare Effects of Eviction and Homelessness Policies", studies the effects of various rental market policies that address evictions and homelessness. I find that "Right-to-Counsel" drives up rents so much that homelessness increases, and welfare is dampened. While lawyers make it harder to evict delinquent tenants, they are unable to prevent evictions because defaults on rent are driven by persistent shocks to income that cannot easily be smoothed across time. In contrast, rental assistance lowers tenants default risk and as a result reduces both homelessness and evictions and increases welfare. the second chapter, "Self-Assessed Financial Literacy in Housing Markets", studies the role of financial knowledge in home- ownership decisions. I show that households who self-assess them- selves to be more financially literate are more likely to own a house and take a more levered position on their house. I find that this is because households with higher levels of self-assessed financial knowledge have access to more accommodating mortgage terms and better risk-return tradeoffs in the housing market.
Author: Calvin Zhang Publisher: ISBN: Category : Languages : en Pages : 118
Book Description
This dissertation consists of three chapters that concern the housing market and home prices. The first chapter analyzes why foreclosures were more prevalent than short sales despite the advantages that short sales offered. The Great Recession led to widespread mortgage defaults, with borrowers resorting to both foreclosures and short sales to resolve their defaults. I first quantify the economic impact of foreclosures relative to short sales by comparing the home price implications of both. After accounting for omitted variable bias, I find that homes selling as a short sale transact at 8.5% higher prices on average than those that sell after foreclosure. Short sales also exert smaller negative externalities than foreclosures, with one short sale decreasing nearby property values by one percentage point less than a foreclosure. So why weren't short sales more prevalent? These home-price benefits did not increase the prevalence of short sales because free rents during foreclosures caused more borrowers to select foreclosures, even though higher advances led servicers to prefer more short sales. In states with longer foreclosure timelines, the benefits from foreclosures increased for borrowers, so short sales were less utilized. I find that one standard deviation increase in the average length of the foreclosure process decreased the short sale share by 0.35-0.45 standard deviation. My results suggest that policies that increase the relative attractiveness of short sales could help stabilize distressed housing markets. The second chapter analyzes how the housing market captures the efficiency of public goods. This chapter is co-authored with David Schönholzer. In the U.S., 36 million people live in unincorporated communities without separate municipal government, instead receiving limited local public goods by counties and special districts. This paper formalizes and empirically quantifies the extent of sorting induced by this arrangement of local governance. Based on predictions of a Tiebout model with heterogeneous income and preferences, we document the effect of municipal governance on housing supply, house prices, land prices, and public goods. We use a boundary discontinuity design and an event study design with administrative data from all boundary changes of 189 Californian cities, combined with the universe of individual property sales over the years 1988-2013. We find considerable sorting induced by municipal boundaries and their changes: sales prices are around $6,000 higher in municipalities and land values are 20% higher. Both housing supply and land values increase substantially after annexation. Changes in per capita expenditures and increases in the quality of police services provide suggestive evidence for public goods as the key mechanism for sorting. The third chapter analyzes the effects of real estate investments by foreign Chinese on local economies in the United States. This chapter is co-authored with Zhimin Li and Leslie Sheng Shen. Starting in 2007, the U.S. witnessed an unprecedented surge in housing purchases by foreign Chinese. We exploit cross-local-area variation in the concentration of Chinese population stemming from pre-sample period differences in Chinese population settlement to identify the economic effects of these investments. Using detailed transaction-level housing purchase data, we find housing investment by foreigners induces higher local area housing net wealth, leading to higher local employment in the non-tradable sectors. Our results suggest the improvement in household balance sheet resulting from capital inflow for housing investment in the U.S. played a mitigating role for the domestic economy during the Great Recession. Based on our empirical findings, we develop a framework that incorporates the housing net worth channel for interpreting the empirical estimates. Our evidence highlight the role of capital inflow and foreign investments on the domestic output and employment, especially in times of economic downturns.
Author: Nadezda Andreevna Kotova
Author: Nadezda Andreevna Kotova
Author: Yifan Chen
Author: Christian Landers Redfearn
Author: Takeshi Yamazaki
Author: Peter Malpass
Author: Claes Bäckman
Author: Deeksha Gupta
Author: Arzu Sen
Author: Boaz Abramson
Author: Calvin Zhang