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The Collateral Channel: How Real Estate Shocks Affect Corporate Investment
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In this article, the impact of real estate prices on corporate investment was studied and the sensitivity of investment to real estate values was found to be a function of local variations in real estate price as shocks to the collateral value of firms that own real estate.Abstract:
What is the impact of real estate prices on corporate investment? In the presence of financing frictions, firms use pledgeable assets as collateral to finance new projects. Through this collateral channel, shocks to the value of real estate can have a large impact on aggregate investment. To compute the sensitivity of investment to collateral value, we use local variations in real estate prices as shocks to the collateral value of firms that own real estate. Over the 1993-2007 period, the representative US corporation invests $0.06 out of each $1 of collateral.read more
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Book ChapterDOI
Research on Relationship Between the Real Estate Prices and Technological Innovation Through Human Capital in China
Zhang Hong,Chen Yingying,Li Vera +2 more
TL;DR: Wang et al. as mentioned in this paper used the fixed effect model to empirically test the impact of real estate prices directly and indirectly on technological innovation through human capital, and they found that real estate price significantly inhibit the technological innovation directly through human resources.
Journal ArticleDOI
The Collateral Value of Housing: Evidence from Servicemember Pension Choice
Benjamin Bennett,Radhakrishnan Gopalan,Thomas Andreas Maurer,Thomas Andreas Maurer,Thomas Andreas Maurer +4 more
TL;DR: In this article, the authors evaluate the effect of personal characteristics and house prices on the choice made by servicememembers among pension options that vary in the time-profile of cash flows.
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Short-run effects of hurricanes on the housing markets: evidence from Florida
TL;DR: In this paper , the authors looked at the immediate effects of hurricanes on the time on the market, share of houses sold and percentage of houses with price cuts in the housing market using the metropolitan statistical area-level data in Florida.
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Getting schooled: Universities and VC-backed immigrant entrepreneurs
TL;DR: This paper analyzed how US universities contribute to the quantity and quality of VC-backed immigrant entrepreneurship in the US and found that foreign students educated in US universities substantially contribute to local and national VC-funded entrepreneurship, thereby identifying higher education's global scope as a potential tool to attract entrepreneurial talent.
Journal ArticleDOI
Housing Collateral Value, Debt Level and Corporate Investment
TL;DR: Wang et al. as mentioned in this paper used the micro data of Chinese listed companies from 2003 to 2015 and the house price data of each province to study the relationship and the mechanism between the housing collateral value of listed companies and the company's investment.
References
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Posted ContentDOI
Credit Rationing in Markets with Imperfect Information.
Joseph E. Stiglitz,Andrew Weiss +1 more
TL;DR: In this paper, a model is developed to provide the first theoretical justification for true credit rationing in a loan market, where the amount of the loan and amount of collateral demanded affect the behavior and distribution of borrowers, and interest rates serve as screening devices for evaluating risk.
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How Much Should We Trust Differences-In-Differences Estimates?
TL;DR: In this article, the authors randomly generate placebo laws in state-level data on female wages from the Current Population Survey and use OLS to compute the DD estimate of its "effect" as well as the standard error of this estimate.
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Do Investment-Cash Flow Sensitivities Provide Useful Measures of Financing Constraints?
Steven N. Kaplan,Luigi Zingales +1 more
TL;DR: In this article, the authors investigated the relationship between financing constraints and investment-cash flow sensitivities by analyzing the firms identified by Fazzari, Hubbard, and Petersen as having unusually high investment cash flow sensitivity.
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Tobin's Marginal q and Average q : A Neoclassical Interpretation
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