EMPLOYMENT SUBCENTERS AND HOME PRICE APPRECIATION RATES IN METROPOLITAN CHICAGO

ABSTRACT We examine the prevalence and determinants of CEOs' use of tax-advantaged trusts prior to their firm's IPO. Twenty-three percent of CEOs use tax-advantaged pre-IPO trusts, and share transfers into tax-advantaged trusts are positively associated with CEO equity wealth, estate taxes, and dynastic preferences. We project that pre-IPO trust use increases CEOs' dynastic wealth by approximately $830,000, on average. We next examine a simple model's prediction that trust use will be positively related to IPO-period stock price appreciation. We find that trust use is associated with 12 percent higher one-year post-IPO returns, but is not significantly related to the IPO's valuation, filing price revision, or underpricing. This evidence is consistent with CEOs' personal finance decisions prior to the IPO containing value-relevant information that is not immediately incorporated into market prices. JEL Classifications: D14; G12; G32; M21; M41. Data Availability: Data are available from the public sources cited in the text.

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Deriving the Rent versus Buy Decision in the Absence of Expected Home Price Appreciation or Risk Premia

Journal of Housing Research ◽

10.1080/10835547.2013.12092064 ◽

2013 ◽

Vol 22 (1) ◽

pp. 33-37

Author(s):

Cristian Voicu ◽

Michael Seiler

Keyword(s):

Risk Premia ◽

Price Appreciation

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Superstar Cities

American Economic Journal Economic Policy ◽

10.1257/pol.5.4.167 ◽

2013 ◽

Vol 5 (4) ◽

pp. 167-199 ◽

Cited By ~ 98

Author(s):

Joseph Gyourko ◽

Christopher Mayer ◽

Todd Sinai

Keyword(s):

Metropolitan Area ◽

Metropolitan Areas ◽

House Prices ◽

Aggregate Demand ◽

House Price ◽

Lower Income ◽

Local Factors ◽

The Past ◽

Long Run ◽

Price Appreciation

We document large long-run differences in average house price appreciation across metropolitan areas over the past 50 years, and show they can be explained by an inelastic supply of land in some unique locations combined with an increasing number of highincome households nationally. The resulting high house prices and price-to-rent ratios in those “superstar” areas crowd out lower income households. The same forces generate a similar pattern among municipalities within a metropolitan area. These facts suggest that disparate local house price and income trends can be driven by aggregate demand, not just changes in local factors such as productivity or amenities. (JEL R11, R23, R31, R52)

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The effect of local amenities on house price appreciation amid market shocks: The case of school quality

Journal of Housing Economics ◽

10.1016/j.jhe.2017.02.003 ◽

2017 ◽

Vol 36 ◽

pp. 62-72 ◽

Cited By ~ 6

Author(s):

Mitchell R. Livy

Keyword(s):

School Quality ◽

House Price ◽

Price Appreciation ◽

Market Shocks

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The Connection Between House Price Appreciation and Property Tax Revenues

National Tax Journal ◽

10.17310/ntj.2008.3.13 ◽

2008 ◽

Vol 61 (3) ◽

pp. 555-572 ◽

Cited By ~ 40

Author(s):

Byron F. Lutz

Keyword(s):

Property Tax ◽

House Price ◽

Tax Revenues ◽

Price Appreciation

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Three essays on China's housing market, monetary policy and macroeconomy

10.32469/10355/70039 ◽

2019 ◽

Author(s):

◽

Yifeng Jia

Keyword(s):

Monetary Policy ◽

Housing Market ◽

Negative Impact ◽

House Price ◽

Housing Price ◽

Policy Instruments ◽

Heterogeneous Effects ◽

Price Appreciation ◽

Economic Stimulus ◽

Monetary Policy Shock

[ACCESS RESTRICTED TO THE UNIVERSITY OF MISSOURI AT REQUEST OF AUTHOR.] This dissertation studies China's housing market and macroeconomic activity with a strong focus on the role of monetary policy behind the markets. The first two chapters concentrate on the house price dynamics in China. Chapter 1 examines the in influence of monetary policy on China's housing price fluctuation by estimating a VAR model with China's aggregated house price data from 1998Q1 to 2015Q4. The monetary policy shock is identify ed by the sign restriction approach following Uhlig (2005), with the identification assumptions extended to three common policy instruments utilized by the central bank of China: interest rate, required reserve ratio and M2. The results suggest a negative impact of a contractionary monetary policy shock on the house price, and M2 tends to be the most effective monetary instruments in terms of policy transmission. The framework is also extended to examine the link between China's 2008 government economic stimulus plan and the subsequent house price appreciation. The obtained evidence suggests that the economic stimulus props up the house price, but its contribution to the post-2008 house price appreciation is not as prominent as indicated by other relevant studies. However, this discrepancy may be explained by the heterogeneous effects of the stimulus policy on local housing markets across China

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Spatial analysis of Twitter sentiment and district-level housing prices

Journal of European Real Estate Research ◽

10.1108/jerer-08-2018-0036 ◽

2019 ◽

Vol 12 (2) ◽

pp. 173-189

Author(s):

Christopher Hannum ◽

Kerem Yavuz Arslanli ◽

Ali Furkan Kalay

Keyword(s):

News Media ◽

Housing Prices ◽

District Level ◽

Future Research ◽

Scoring Method ◽

Cross Sectional ◽

Data Set ◽

Content Type ◽

Property Prices ◽

Price Appreciation

Purpose Studies have shown a correlation and predictive impact of sentiment on asset prices, including Twitter sentiment on markets and individual stocks. This paper aims to determine whether there exists such a correlation between Twitter sentiment and property prices. Design/methodology/approach The authors construct district-level sentiment indices for every district of Istanbul using a dictionary-based polarity scoring method applied to a data set of 1.7 million original tweets that mention one or more of those districts. The authors apply a spatial lag model to estimate the relationship between Twitter sentiment regarding a district and housing prices or housing price appreciation in that district. Findings The findings indicate a significant but negative correlation between Twitter sentiment and property prices and price appreciation. However, the percentage of check-in tweets is found to be positively correlated with prices and price appreciation. Research limitations/implications The analysis is cross-sectional, and therefore, unable to answer the question of whether Twitter can Granger-cause changes in housing markets. Future research should focus on creation of a property-focused lexicon and panel analysis over a longer time horizon. Practical implications The findings suggest a role for Twitter-derived sentiment in predictive models for local variation in property prices as it can be observed in real time. Originality/value This is the first study to analyze the link between sentiment measures derived from Twitter, rather than surveys or news media, on property prices.

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