Research Agenda

  • In the canonical model of asset pricing, house prices equal the present value of future net rents (or shelter service flows for owner-occupiers):
  • pt=Eti=i=1Rentt+i(1+r)i
  • In this model house prices move due to either changes in expected rents or discount rates.
  • My research studies benefits of home ownership which are consumed by owners but not by renters.
  • The ability to pledge a home as collateral (along with the tax benefits) is enjoyed by owners but not by renters.
  • The ability to protect home equity from unsecured creditors is enjoyed by owners but not by renters.
  • Incorporating these indirect service flows (denoted Xt) can help us better understand house price movements:
  • pt=Eti=i=1Rentt+i+Xt+i(1+r)i

News

  • September, 2021. My paper “Does Collateral Value Affect Asset Prices? Evidence from a Natural Experiment in Texas” was published in RFS.

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