Maisy Wong

Education

Ph.D. in Economics: Massachusetts Institute of Technology, 2008; B.A. in Economics: University of California, Berkeley, 2003

Academic Positions Held

Associate Professor, The Wharton School: 2017Assistant Professor, The Wharton School: 20082017

Other Positions

Consultant, World Bank (Jakarta Office), 20032011

Maisy Wong (2016), CMBS and Conflicts of Interest: Evidence from Ownership Changes of Servicers , Journal of Finance.

Abstract: Selfdealing is potentially important but difficult to measure. I study special servicers in commercial mortgagebacked securities(CMBS),who sell distressed assets on behalf of bondholders. Around 2010, ownership changes for four major servicers raised tunneling concerns that they may direct benefits to new owners’ affiliates (buyers and service providers). Loans liquidated after ownership changes have greater loss rates than before (8 percentage point, $2.3 billion in losses), relative to other (placebo) servicers. Together with a case study that tracks selfdealing purchases, the findings point to potential steering conflicts that could incentivize tunneling through fees to service providers

Maisy Wong, Parag A. Pathak, Panle Jia Barwick (2016), Conflicts of Interest and Steering in Residential Brokerage, American Economic Journal: Applied Economics.

Abstract: This paper documents uniformity in real estate commission rates offered to buyers’ agents using 653,475 residential listings in eastern Massachusetts from 19982011. Properties listed with lower commission rates experience less favorable transaction outcomes: they are 5% less likely to sell and take 12% longer to sell. These adverse outcomes reflect decreased willingness of buyers’ agents to intermediate low commission properties (steering), rather than heterogeneous seller preferences or reduced effort of listing agents. Offices with large market shares purchase a disproportionately small fraction of low commission properties. The negative outcomes for low commissions provide empirical support for regulatory concerns over steering.

Samuel Bazzi, Arya Gaduh, Alexander Rothenberg, Maisy Wong (Forthcoming), Skill Transferability, Migration, and Development: Evidence from Population Resettlement in Indonesia.

Abstract: We use a natural experiment in Indonesia to provide causal evidence on the role of locationspecific human capital and skill transferability in shaping the spatial distribution of productivity. From 19791988, the Transmigration Program relocated two million migrants from rural Java and Bali to new rural settlements in the Outer Islands. Villages assigned migrants from regions with more similar agroclimatic endowments exhibit higher rice productivity and nighttime light intensity one to two decades later. We find some evidence of migrants' adaptation to agroclimatic change. Overall, our results suggest that regional productivity differences may overstate the potential gains from migration.

Maisy Wong (Working), A Tractable Framework to Relate Marginal WillingnesstoPay in Hedonic and Discrete Choice Models.

Abstract: The two primary approaches to estimate marginal willingnesstopay (MWTP) are hedonic (Rosen:1974) and discrete choice models (McFadden:1974). This paper provides a tractable framework to investigate the relationship between MWTP in these models. By deriving the hedonic price gradient implicitly from the share function in the discrete choice model, I present an analytical mapping between the hedonic gradient (hence, the hedonic MWTP) and choice probabilities in the discrete choice model. Intuitively, the hedonic MWTP depends on weighted averages of marginal utilities where higher weights are assigned to individuals whose choice probabilities indicate more uncertain choices (marginal individuals). As this choice becomes more certain, the weights start to decrease. Since the hedonic method relies on tangencies between indifference curves and the hedonic price function to identify MWTP, inframarginal individuals (whose bid functions are not tangent to the hedonic price function) have low weights (they have choice probabilities that are close to 0 or 1 and low choice variances). This novel analytical mapping between the hedonic gradient and the share function can be used to identify conditions when MWTP in the two models are similar. 

Karna Basu and Maisy Wong (2015), Evaluating Seasonal Food Storage and Credit Programs in East Indonesia, Journal of Development Economics.

Maisy Wong (2014), Estimating the Distortionary Effects of Ethnic Quotas in Singapore Using Housing Transactions, Journal of Public Economics, 115, pp. 131145.

Menno Pradhan, Daniel Suryadarma, Amanda Beatty, Maisy Wong, Arya Gaduh, Armida Alisjahbana, Rima Prama Artha (2014), Improving Educational Quality through Enhancing Community Participation: Results from a Randomized Field Experiment in Indonesia, American Economic Journal: Applied Economics, 6 (2), pp. 105126.

Maisy Wong (2013), Estimating Ethnic Preferences Using Ethnic Housing Quotas in Singapore, Review of Economic Studies, 80 (3), pp. 11781214.

Past Courses

FNCE209 REAL ESTATE INVESTMENTS

This course provides a broad introduction to real estate with a focus on investment and financing issues. Project evaluation, financing strategies, investment decision making and real estate capital markets are covered. No prior knowledge of the industry is required, but students are expected to rapidly acquire a working knowledge of real estate markets. Classes are conducted in a standard lecture format with discussion required. The course contains cases that help students evaluate the impact of more complex financing and capital market tools used in real estate. There are case studies and two midterms, depending on instructor.

REAL209 REAL ESTATE INVESTMENTS

This course provides an introduction to real estate with a focus on investment and financing issues. Project evaluation, financing strategies, investment decision making and real estate capital markets are covered. No prior knowledge of the industry is required, but students are expected to rapidly acquire a working knowledge of real estate markets. Classes are conducted in a standard lecture format with discussion required. The course contains cases that help students evaluate the impact of more complex financing and capital markets tools used in real estate. There are case studies and two midterms, (depending on instructor).

REAL721 REAL ESTATE INVESTMENTS

This course provides an introduction to real estate with a focus on investment and financing issues. Project evaluation, financing strategies, investment decision making and capital markets are covered. No prior knowledge of the industry is required, but students are expected to rapidly acquire a working knowledge of real estate markets. Classes are conducted in a standard lecture format with discussion required. The course contains cases that help students evaluate the impact of more complex financing and capital markets tools used in real estate. There are case studies and two midterms, (depending on instructor). Crosslisted with FNCE 721.