Learning about Housing Cost
Date: Tuesday, October 22, 2019
Time: 12:30 p.m. – 1:30 p.m.
Location: Henry Angus Building 492 (Map)
The Vancouver School is Economics is proud to present Monika Piazzesi, Joan Kenney Professor of Economics at Stanford University, on Learning About Housing Cost.
About the lecture
We use new micro data from household surveys to study expectation formation during the ongoing German housing boom. We find that renters, especially those who live in `hot’ regions where house prices have appreciated the most, are expecting future house prices to appreciate more than owners. On average, households predict reversal to trend and, hence, underestimate actual price growth. A model of learning about housing cost can explain these facts: renters pay for housing services and consequently may understand their value better than owners, who simply consume them. As a result, renters have higher forecasts in booms, whether they are driven by a recent increase in rents or whether they reflect a recovery from a recent downturn in prices. The model is also consistent with survey data on households’ plans, price and rent forecasts, and reported sources of information.
About the presenter
Monika Piazzesi is the Joan Kenney Professor of Economics at Stanford University. In 2005, when she was Assistant Professor at the University of Chicago Business School, she won the Germán Bernácer Prize. The following year, she won the Elaine Bennett Research Prize. Her research focuses on asset pricing and time series econometrics, especially related to bond markets and the term structure of interest rates.
Piazzesi received an undergraduate degree in economics from the University of Bonn in 1994 and her Ph.D. in economics from Stanford University in 2000. She joined the Stanford faculty in 2008 as Professor of Economics, becoming the Joan Kenney Professor of Economics in 2010. She has been director of the NBER Asset Pricing Program since 2007.
VSE’s Woodward Lecture Event Series
Mr. Eugene Sidney Woodward was a journalist who enjoyed a successful career writing for newspapers such as the Vancouver Sun, Vancouver Province, and Vancouver News-Herald, and also published under the pseudonym of Gene Ard. Through the generosity of Mr. Woodward, UBC has established a lectureship to perpetuate his spirit of concern for economic freedom and his interest in fresh approaches to contemporary economic problems and institutions. The lectureship is administered by the Vancouver School of Economics.
For a list of past lectures, click here.