Jaime Luque

Jaime Luque joined the University of Wisconsin-Madison as assistant professor in the Department of Real Estate and Urban Land Economics at the Wisconsin School of Business (WSB) in September 2012. Prior to joining WSB, he was a visiting professor at the Carlos III University of Madrid.

Jaime’s main academic research applies general equilibrium theory to financial and real estate markets. He has conducted research on the consequence of repo and rehypothecation on security pricing and market pressures. This line of research evolved towards the understanding of leverage dynamics, security bubbles and anomalies in currency markets.

He has also written on the role of the credit scoring technology on the evolution of subprime mortgage lending. This theory rationalizes how new credit scoring models - like the ones that became available in the early 1990s to subprime lenders - make remote subprime conduit lenders that only rely on hard credit information become a desirable option for consumers.

One of Jaime’s current projects focuses on the impact of the European sovereign crisis on banks’ cross-border mortgage lending. He identifies the changes in funding cost and capital as the main determinants that induce banks to rebalance their mortgage portfolios towards other geographies. A second paper takes a deeper look at how changes in repo funding conditions affect banks’ cross-border lending strategies.

Another current project centers on the determinants of commercial real estate development. A key insight from this line of research is that the capital structures of real estate assets in different jurisdictions are inter-dependent because developers compete for financial resources in global debt and equity markets. Moreover, global real estate markets influence local jurisdictions’ fiscal policies. An extension of this line of research studies the role of the TIF and LIHTC programs on affordable housing development.

Jaime’s research has been published in journals such as Journal of Economic Theory, Journal of Public Economics, Economic Theory, Real Estate Economics, and Regional Science and Urban Economics. He has also written opinion pieces for the Financial Times, Expansion, La Repubblica, and the Huffington Post, as well as for the Vox.eu, Eurointelligence and The Conversation economics op-ed sites.

Jaime's teaching specializations at the Wisconsin School of Business include real estate finance and urban economics. He teaches in the MBA and BBA programs. Recently, his pedagogical efforts have focused on the topic of affordable housing. Housing affordability is one of the main reasons for the devastating crisis of poverty, hunger, and homelessness in the United States today. Jaime is actively promoting a series of academic events on this issue that involve politicians, legislators, developers, academics and students in Madison, Wisconsin.

Selected Published Journal Articles

• Luque, J. (2017). Cross-border Residential Mortgage Lending: Theory and Evidence from the European Sovereign Debt Crisis. Real Estate Economics
• Faias, M. & Luque, J. (2017). Cross-listed Securities and Multiple Exchange Memberships. B.E. Journal of Theoretical Economics
• Faias, M. & Luque, J. (2017). Endogenous Formation of Security Exchanges. Economic Theory (64), 331-355.
• Luque, J. & Taamouti, A. (2014). Did the Euro Change the Effect of Fundamentals on Growth and Uncertainty?. B. E. Journal of Macroeconomics (14), 625-660.
• Luque, J. (2014). Wages, Local Amenities, and the Rise of the Multi-skilled City. Annals of Regional Science (52), 457-467. doi: 10.1007/s00168-014-0594-4.
• Luque, J. & Morelli, M. & Tavares, J. (2014). A Volatility-based Theory of Fiscal Union Desirability. Journal of Public Economics (112), 1-11.
• Luque, J. (2013). Heterogeneous Tiebout Communities with Private Production and Anonymous Crowding. Regional Science and Urban Economics (43), 117-123. doi: 10.1016/j.regsciurbeco.2012.05.007.
• Bottazzi, J. & Luque, J. & Pascoa, M. (2012). Securities Market Theory: Possession, Repo and Re-hypothecation. Journal of Economic Theory (147), 477-500. doi: 10.1016/j.jet.2010.11.004.

Working Papers

• Luque, J. (2017). Assessing the Role of TIF and LIHTC on Affordable Housing Development.
• Almeida, A. & Faias, M. & Luque, J. (2017). CAPM with non-recourse mortgage debt.
• Luque, J. & Mello, A. (2017). Cross-Border Banking in the Euro Area Crisis: Implications for Commercial Mortgage Lending.
• Bottazzi, J. & Luque, J. & Pascoa, M. (2017). Equilibrium in FX Swap Markets: Funding Pressures and the Cross-Currency Basis.
• Bottazzi, J. & Luque, J. & Pascoa, M. (2017). Leverage, Security Bubbles and the Regulation of Repo Markets.
• Luque, J. & Riddiough, T. (2017). The Credit Scoring and Transmission Channels in the Non-Prime Mortgage Market.
• Luque, J. (2017). The Repo Channel of Cross-Border Lending in the European Sovereign Debt Crisis. Faias, M. & Luque, J. (2017). Developers, Wall Street and Taxmen: A Theory of Real Estate Development.

Presentations

Seminar at the University of Southern California ( 2017 ) Cross-border Mortgage Lending

Center of Financial Security ( 2017 ) Cross-border Mortgage Lending

European Meeting of the Econometric Society ( 2017 ) The Repo Channel of Cross-Border Lending

AREUEA International ( 2017 ) Cross-border Residential Mortgage Lending

Society for the Advancement of Economic Theory ( 2017 ) The Repo Channel of Cross-Border Lending

ASSA-AREUEA ( 2017 ) Commercial Real Estate Development, Investments and Taxes

Conference on Real Estate and Financial Stability ( 2016 ) Subprime Mortgage Lending

Finance Forum ( 2016 ) Cross-border Lending During the Sovereign Crisis

Seminar at University of Bern ( 2016 ) Subprime Mortgage Lending

ASSA-AREUEA ( 2016 ) Commercial Real Estate Development, Investments and Taxes

ASSA-AREUEA ( 2016 ) Subprime mortgage lending

Seminar at IE School of Business ( 2015 ) Subprime mortgage lending

Financial Market Liquidity Conference ( 2015 ) Dollar squeeze

Internal seminar at Wisconsin School of Business, Real Estate Department ( 2015 ) Hospital location and catchment areas

Housing Urban Labor Macro conference ( 2015 ) Subprime mortgage lending

Internal seminar at Wisconsin School of Business, Real Estate Department ( 2015 ) The Sovereign Crisis: Credit Crunch, Flight-to-Quality and Flight-Home by Loan Types and Geographies

EI-BoI-BGFRS-TAU-UCLA Conference on Housing Affordability ( 2015 ) Subprime mortgage lending

SAET Conference ( 2015 ) Subprime mortgage lending

Finance Forum ( 2015 ) Subprime mortgage lending

European Workshop on General Equilibrium Theory ( 2015 ) Subprime mortgage lending

DePaul University Economics/Finance Conference ( 2015 ) Subprime mortgage lending

Internal seminar at Wisconsin School of Business, Real Estate Department ( 2015 ) Subprime mortgage lending

Internal seminar at Wisconsin School of Business, Real Estate Department ( 2015 ) Subprime mortgage lending

Rays of Research Blitz ( 2015 ) Subprime mortgage lending

Rays of Research Blitz, Wisconsin Shcool of Business ( 2015 ) Subprime mortgage lending

Economics & Finance junior faculty seminar ( 2015 ) Subprime mortgage lending

Economics and Business junior faculty lunch seminar ( 2015 ) Subprime mortgage lending

X Housing-Urban-Land-Macroeconomics Conference ( 2013 ) Dollar Shortage, Central Bank Actions, and the Cross Currency Basis

European Meeting of the Econometric Society ( 2013 ) Dollar Shortage, Central Bank Actions, and the Cross Currency Basis

Conference of the Society for the Advancement in Economic Theory (SAET) ( 2013 ) Endogenous Bourse Structures

Seminar at University of Miami, Economics Department ( 2013 ) Endogenous bourse structures

Seminar at Purdue University, Economics Department ( 2013 ) Endogenous bourse structures

Seminar at University of Indiana, Economics Department ( 2013 ) Endogenous bourse structures

Internal seminar at the Economics deparment, University of Wisconsin – Madison ( 2012 ) Endogenous bourse structures

Seminar at Spanish Securities and Exchange Commission (CNMV) ( 2012 ) The Dollar Squeeze of the Financial Crisis

Seminar at the Federal Reserve of Atlanta ( 2012 ) The Dollar Squeeze of the Financial Crisis

Seminar at Wisconsin School of Business ( 2012 ) The Dollar Squeeze of the Financial Crisis

Seminar at the European Central Bank (Frankfurt, Germany) ( 2012 ) A Volatility-based Theory of Fiscal Union Formation

Spanish Symposium of Economic Analysis ( 2011 ) Endogenous Bourse Structures

Carlos II Macro-Workshop ( 2011 ) The 2008 dollar squeeze

Internal Seminar at Carlos III University of Madrid, Department of Economics ( 2011 ) A Volatility-based Theory of Fiscal Union Formation

The financial crisis: lessons for internation macroeconomics ( 2011 ) Fiscal Union Consensus Design Under the Risk of Autarky

Lisbon Meeting on Institutions and Political economy ( 2011 ) Fiscal Union Consensus Design Under the Risk of Autarky

Society of economic dynamics (SED) ( 2011 ) Securities Market Theory: Possession, Repo and Rehypothecation

Society for the advancement in economic theory ( 2011 ) Endogenous bourse structres

Association for Public Economic Theory (PET) ( 2011 ) Endogenous bourse structres

European workshop in general equilibrium theory ( 2011 ) Endogenous Bourse Structures

Association for Public Economic Theory (PET) ( 2010 ) The Battle of the Bourses

European workshop in general equilibrium theory ( 2010 ) Where to Live? Wages, community composition and public goods

Society for the advancement in economic theory ( 2009 ) Will you lend me to short? The role of the box in leverage and repo fails

Association for Public Economic Theory ( 2009 ) Where to live? Wages, community composition and public goods

European Workshop in General Equilibrium and its Applications ( 2009 ) Will you lend me to short? The role of the box in leverage and repo fails

European workshop in general equilibrium theory ( 2009 ) Will you lend me to short? The role of the box in leverage and repo fails

CARESS-Cowles Conference in General Equilibrium and its Applications ( 2009 ) Will you lend me to short? The role of the box in leverage and repo fails

Winter Meeting of the Econometric Society ( 2008 ) Migration Choice and Jurisdiction Size in a Local Public Good Economy: The Role of Exclusion

ASSET ( 2008 ) Tastes, Enhancing Skills and the Provision of Local Public Goods: A General Equilibrium Approach

Workshop of Public Goods, Public Projects and Externalities ( 2008 ) Tastes, Enhancing Skills and the Provision of Local Public Goods: A General Equilibrium Approach

Financial Management Association ( 2008 ) Collateral Manipulability in the Mortgage Market

Society for the Advancement in Economic Theory ( 2007 ) On the Formation of Jurisdictions with Heterogeneous Agents’ Characteristics

Third Summer School on Economic Analysis of Heterogeneity in Social Organizations ( 2007 ) On the Formation of Jurisdictions with Heterogeneous Agents’ Characteristics

Workshop in Game Theory and Applications to International Economics ( 2006 ) On the Formation of Jurisdictions with Heterogeneous Agents’ Characteristics

Undergraduate Courses

Urban and Regional Economics (RES 420), Fall .

Real Estate Finance (RES 410), Fall .

Graduate Courses Urban Economics (RES/RES 720), Fall 2016.

Learning/Teaching Oriented Publications

• Luque, J. (2017). The Subprime Crisis: Lessons for Business Students. World Scientific Publishing
• Luque, J. (2016). Rays of Research of Real Estate. Business Expert Press
• Luque, J. (2015). Urban Land Economics. Springer

Professional Organizations

CHUM conference (program committee member)

American Economic Association

American Real Estate and Urban Economics Association

Econometric Society

Society for the Advancement of Economic Theory

Editorial and Reviewing Activities

Economic Development Quarterly - Since January 2017 Invited Manuscript Reviewer

Canadian Journal of Economics - Since January 2017 Invited Manuscript Reviewer

International Journal of Urban Studies - Since April 2016 Invited Manuscript Reviewer

Journal of Banking and Finance - Since January 2016 Invited Manuscript Reviewer

Regional Science and Urban Economics - Since January 2016 Invited Manuscript Reviewer

Contemporary Economic Policy - Since January 2016 Invited Manuscript Reviewer

International Journal of Urban Studies - Since January 2016 Invited Manuscript Reviewer

Journal of Financial Market Infrastructures - Since January 2015 Invited Manuscript Reviewer

Real Estate Economics - Since January 2015 Invited Manuscript Reviewer

B.E. Journal of Theoretical Economics - Since January 0001 Invited Manuscript Reviewer

Economic Theory - Since January 0001 Invited Manuscript Reviewer

Economics Bulletin - Since January 0001 Invited Manuscript Reviewer

Journal of Economic Theory - Since January 0001 Invited Manuscript Reviewer

Journal of Public Economic Theory - Since January 0001 Invited Manuscript Reviewer

Journal of Urban Economics - Since January 0001 Invited Manuscript Reviewer

Journal of Public Economics - Since January 0001 Invited Manuscript Reviewer