Incentive provision is expected to be a key driver of asset managers’ compensation, yet empirical evidence on performance-based pay has been limited and mixed. This paper delivers a novel perspective on managerial incentives by examining the role of production complementarities between...

This paper examines how price risk affects housing demand. It identifies two relevant channels: a financial risk effect that reduces demand, and a hedging effect that increases demand since current homes may hedge future housing costs. The latter dominates when hedging incentives are strong,...

This article provides an empirical framework to study entry and cost inefficiency in the real estate brokerage industry. We develop a structural entry model that exploits individual level data on entry and earnings to estimate potential real estate agents' revenues and reservation wages, thereby...

This paper presents a life-cycle model of housing demand with uncertain house prices and lumpy transaction costs. The paper extends the (S,s) methodology to a non-stationary discrete time framework with multivariate stochastic price processes. This allows the characterization of a self-hedging...