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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.
