Annual Conference

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Investment Finance, Senior Fellows/Fellows

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May 2018

Reverse mortgages allow retirees to access a portion of their home equity to meet spending needs while insuring that they can age in place. In the U.S., almost all reverse mortgages are in the form of a Home Equity Conversion Mortgage (HECM)--a product designed and administered by the federal govern...
Keywords: Reverse mortgage, government credit programs
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Annual Conference

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Investment Finance

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May 2018

Financial intermediaries often provide guarantees resembling out-of-the-money put options, exposing them to undiversifiable tail risk. We present a model in the context of the U.S. life insurance industry in which the regulatory framework incentivizes value-maximizing insurers to hedge variable annu...
Keywords: Financial stability, Asset similarity, fire sales, Insurance companies
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Annual Conference

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Investment Finance, Senior Fellows/Fellows

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May 2018

Corporate environmental concerns (i.e., weaknesses) are spatially clustered, unlike environmental strengths. Firms headquartered in cities friendlier towards the environment (“green” cities) are less likely to have environmental concerns. Manufacturing facilities operated by such firms pose lowe...
Keywords: Environmental issues, environmental performance, toxic substances, corporate environmental policies, local bias
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Annual Conference

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Investment Finance

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May 2018

We find that people revise their beliefs about climate change upward when experiencing warmer than usual temperatures in their area. Using international data, we show that attention to climate change, as proxied by Google search volume, increases when the local temperature is abnormally high. In fin...
Keywords: Global warming, Climate Change, Financial markets, stocks
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Annual Conference

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Real Estate and Urban Economics, Senior Fellows/Fellows

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May 2018

We develop a dynamic general equilibrium model that describes the evolution of land prices and rental rates in a monocentric city. The model explores the implications of urban configurations that may differ in terms of the flexibility of the citys borders and land use, i.e., zoning and the presence ...
Keywords: Land prices, land supply, rental rates
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