Annual Conference

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Investment Finance, Senior Fellows/Fellows

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May 2014

How Constraining Are Limits to Arbitrage?

Wenlan QIAN, Alexander LJUNGQVIST
Limits to arbitrage play a central role in behavioral finance. They interfere with arbitrage processes so that security prices can deviate from true values for extended periods of time. We show empirically that limits to arbitrage need not be binding even in settings characterized by extreme costs o...
Keywords: Limits to arbitrage, short sale constraints, mispricing, Short Selling, activist short sellers, trading strategies, Behavioral finance, market efficiency
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AMPF Papers

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Keynotes

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May 2023

Housing, Household Debt, and the Business Cycle An Application to China and Korea

Amir SUFI
A rise in household debt in the medium run produces a boom-bust pattern in economic activity, and the subsequent downturn after a large rise in household debt can be especially painful (e.g., Mian, Sufi and Verner (2017), Mian and Sufi (2018), Mian, Sufi and Verner (2020)). The original research sho...
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Annual Conference

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Real Estate and Urban Economics

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May 2023

Housing Wealth and Fertility in China: A Regression Discontinuity Design

Fan ZHANG, Ya TAN, Geer ANG, Qinghua ZHANG
In this paper we examine the effects of housing wealth on fertility outcomes using a regression discontinuity design based on a 2006 Chinese housing policy. We show that the positive shock to housing wealth generated by this policy increased the likelihood of fertility by a significant margin of 3.6...
Keywords: Housing wealth, Fertility, Labor Participation, Health
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Annual Conference

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Economic Transformation of Asia

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May 2015

Housing vacancy rate and urbanization in China

Gan LI
In recent years, the phenomenon of housing vacancy rate (HVR) has attracted considerable attention, especially concerning unjustified expansions of Chinese cities. /e aforementioned trend is disadvantageous in that it will ultimately lead to tremendous wastage of valuable land that could otherwise b...
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Annual Conference

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Real Estate and Urban Economics

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May 2023

Housing Speculation and Entrepreneurship

Yichu WANG, Xuan TIAN
We document a speculation channel through which house market booms negatively affect entrepreneurship. To address endogeneity concerns, we exploit plausibly exogenous variation in house prices generated by staggered and unintended policy spillovers in China. We find house market speculation triggere...
Keywords: Housing speculation, Entrepreneurship, house purchase restriction policy
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