This paper examines the mediating effect of the recent financial crisis on the relationship between house value fluctuation and households' liquid portfolio choice. To isolate exogenous variation in homeowners' home equity and mortgage debt before and after the crisis, I use a new regional level...

Using Japanese household micro survey data during 2000-2015, this paper examines the effects of housing on household stock holdings. To disentangle the effect of housing asset (land value) and mortgage debt on households' portfolio share of stocks out of liquid financial assets, we apply the...

Households systematically overvalue or undervalue their houses. We compute house value misperception as the difference between self-reported and market house values. Misperception is sizable, countercyclical, and persistent. We find that a 1 percent increase in house overvaluation results, on...

Conventional wisdom assumes that homeownership is risky because house prices are volatile. But all households start life short housing services, and homeownership could be a less risky way of obtaining those services than the alternative, renting. While a renter faces year-toyear fluctuations in...

Are housing returns predictable? If so, do households take them into account when making their housing consumption and portfolio decisions? We document the existence of housing return predictability in the U.S. at the aggregate, census region, and state level. We study a portfolio choice model...

This paper examines the law and policy nexus in the context of overseas investment law, primarily in New Zealand. It examines the difficulties of balancing the need for overseas investment-especially in land and business assets-against the need to protect a country's interests and in doing so...

We study the dynamic consumption-portfolio problem over the life cycle, with respect to tax-deferred investing for investors who acquire housing services by either renting or owning a home. The joint existence of these two investment vehicles creates potential for tax arbitrage. Specifically,...

This study evaluates the effectiveness of geographic diversification in reducing housing investment risk. To characterize diversification potential, we estimate spatial correlation and integration among 401 US metropolitan housing markets. The 2000s boom brought a marked uptrend in housing...

Home Equity Conversion Mortgages ("HECMs'') implicitly bundle put options on borrowers' homes with non-defaultable credit lines. Put proceeds are bequeathable and insure longevity and home prices. Credit use is elective, so the put's expected net present value bounds HECM's value to borrowers...

This paper investigates the macroeconomic effects of search risk in the housing market. To do so, I introduce a tractable directed search model of housing with multidimensional buyer and seller heterogeneity. I incorporate this framework in an incomplete markets macroeconomic model with...