Spatial Asset Pricing: A First Step

42 Pages Posted: 18 Jan 2016

See all articles by François Ortalo-Magné

François Ortalo-Magné

Wisconsin School of Business; CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Andrea Prat

Centre for Economic Policy Research (CEPR); Columbia Business School - Finance and Economics

Multiple version iconThere are 3 versions of this paper

Date Written: January 2016

Abstract

People choose where to live and how much to invest in housing and financial assets, including whether to buy or to rent their home. Traditionally, the first decision has been the domain of spatial economics, while the second has been analysed in finance. Spatial asset pricing combines the two sets of decisions in a tractable dynamic portfolio choice problem, which leads to an array of predictions on the geographical allocation of human capital, households portfolio over space and time, housing rents, housing and asset prices.

Suggested Citation

Ortalo-Magne, Francois and Prat, Andrea, Spatial Asset Pricing: A First Step (January 2016). Economica, Vol. 83, Issue 329, pp. 130-171, 2016. Available at SSRN: https://ssrn.com/abstract=2716513 or http://dx.doi.org/10.1111/ecca.12171

Francois Ortalo-Magne (Contact Author)

Wisconsin School of Business ( email )

4300 Grainger Hall
975 University Avenue
Madison, WI 53706-1323
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608-262-7867 (Phone)
608-262-7867 (Fax)

HOME PAGE: http://francois.marginalq.com

CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Poschinger Str. 5
Munich, DE-81679
Germany

HOME PAGE: http://www.CESifo.de

Andrea Prat

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Columbia Business School - Finance and Economics ( email )

3022 Broadway
New York, NY 10027
United States

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