Area: Finance
Could Costly Housing Bring Down Superstar Cities?
Stuart Gabriel’s research shows how a vibrant economic hub loses essential residents
Quantitative Easing Kept the Foreclosure Crisis from Being Even Worse
The Fed’s gambit didn’t trigger a home-price recovery, but research shows it reduced subprime foreclosure risk
How Life Insurers Insulate the Markets from Turmoil
Valentin Haddad’s research finds that insurers’ patient investing shields risky assets — and those who hold them — from steeper declines
To Wall Street, There’s No Crisis Like a Banking Crisis
Tyler Muir finds that neither war nor deep recession darkens investor sentiment like sudden turmoil in the financial system
The Moat That Keeps Complex Asset Strategies Profitable
Andrea Eisfeldt finds that hedge funds with infrastructure to execute sophisticated arbitrage crowd out less-expert investors
Taking the Battle for Financial Literacy to Where the Eyeballs Are
Research by Bruce Carlin and Stephen Spiller suggests YouTube videos could help consumers make better money decisions
How an Excess of Stock Analyst Optimism Lands on Companies Least Deserving of It
Results of financially weak firms are difficult to forecast; in uncertainty, Wall Street’s views are overly generous
Chinese Investors Learn about Derivatives the Hard Way
An analysis of warrant trading reveals individuals’ poor grasp of complex securities
Lending to Startups: Not as Risky as You’d Think
Entrepreneurs borrow between equity funding rounds with a strong record of repaying debts
Calculating a Value for the Government Support Banks Enjoy
Researchers’ model could quantify the risks in the growing movement to ease up on Dodd-Frank regulations
Mortgage Prepayments: Factors beyond Interest Rate Movements
A model estimates the impact of economic variables on the pricing of prepayment risk
Single-Family Rentals: What Drives Investor Return?
A unique data set provides fresh insights for the growing institutional investor market
Sizing Up the Measurable Good of Affirmative Action
An economic model sets aside who loses and focuses on efficiency and overall growth
Financial Constraints on Intermediaries Cause Asset Mispricing
Real-world bond data reveals how the capital positions and liquidity of middlemen affect prices of securities they broker
How Tech’s Disruption Alters Investors’ Appetite for Risk
New technology’s upending of the old creates demand for alternative assets to offset risk
Are Interest Rates Really So Low?
Adjusting for inflation — and, crucially, for taxes — shows bond investors fare better than they might think