Annual Conference

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Real Estate and Urban Economics

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May 2018

Social Capital and Mortgage Delinquency

Abdullah YAVAS, Lingxiao LI, Erdem UCAR
This study offers a simple theoretical model and empirical evidence to address the impact of social capital on mortgage delinquency. Social capital includes the norms, values, trust, and information common to a social network, which enable cooperative and shared actions. Using a new county-level dat...
Keywords: Social capital, mortgage delinquency, opportunistic behaviour, financial crisis
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Annual Conference

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Investment Finance, Senior Fellows/Fellows

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May 2018

Spillovers in Asset Prices: The Curious Case of Haunted Houses

Utpal BHATTACHARYA, Daisy HUANG, Kasper MEISNER NIELSEN
Exploiting the unique institutional setting of Hong Kong’s real estate market, we uncover a curious ripple effect of haunted houses on the prices of nearby houses. Prices drop on average 20% for units that become haunted, 10% for units on the same floor, 7% for units in the same block, and 1% for ...
Keywords: fire sales, Negative spillovers, Haunted houses
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Annual Conference

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Real Estate and Urban Economics, Senior Fellows/Fellows

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May 2018

Home Purchasing Subsidies, Adverse Selection and Mortgage Performance

Sumit AGARWAL, Pulak GHOSH, Souphala CHOMSISENGPHET, Man ZHANG
We find that home affordability policy induces the marginal buyers to take home loans and they are more likely to be delinquent in subsequent payments. India government increased total income tax exemption limit by 50,000 INR (US $ 833) in July 2014. The sectional exemption limits for both the princ...
Keywords: homeownership subsidy, Fiscal Policy, income tax, mortgage delinquency, household financial mistakes
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Annual Conference

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Real Estate and Urban Economics

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May 2018

There's No Place like Home: Information Asymmetries, Local Asset Concentration, and Portfolio Returns

David C. LING, Andy NARANJO, Benjamin SCHEICK
We provide robust evidence showing local information plays a significant role in local asset concentrations and return outperformance. Using a unique setting with significant cross-market information asymmetries and large sample of individual commercial property holdings, we find property portfolio ...
Keywords: Asset Concentration, Information asymmetry, Home Bias, Location, Real Estate Returns
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Annual Conference

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International Macroeconomics, Money & Banking

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May 2018

Corporate Default Risk and Loan Pricing Behavior in China

Hongyi CHEN, Jianghui CHEN, Gaofeng HAN
This paper studies banks’ loan pricing behaviour in mainland China from 2003-2013 by applying panel regressions to firm-level loan data and estimated default likelihood for listed companies. We find that, with the progress of market-oriented financial reforms, banks generally require compensation ...
Keywords: Default Risk, Bank Loan Pricing, SOE, Non-SOE, China
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