Research

“Stochastic Volatility and Asset Pricing Puzzles”, revision requested at Journal of Finance (Tim McQuade)
“Who Creates New Firms when Local Opportunities Arise?” (Tim McQuade, Emanuele Colonnelli, and Davide Malacrino), revision requested at Journal of Financial Economics (Tim McQuade)
“The Contribution of Immigrants to Innovation in the United States” (Tim McQuade with Shai Bernstein, Rebecca Diamond, and Beatriz Pousada), Charles River Associates Award for the Best Paper on Corporate Finance, WFA 2019
“Who Benefits from Rent Control? The Equilibrium Consequences of San Francisco’s Rent Control Expansion” (Tim McQuade with Rebecca Diamond and Franklin Qian)
“Consumption Responses to the Affordable Care Act: Evidence from Bank and Credit Card Data” (Tim McQuade with Rebecca Diamond, Michael Dickstein, and Petra Persson)

CUREC Research

Negative Home Equity and Household Labor Supply

July 21, 2022

ABSTRACT Using U.S. household-level data and plausibly exogenous variation in the location-timing of home purchases with a single lender, I find that negative home equity causes a 2% to 6% reduction in household labor supply. Supporting causality, households are observationally equivalent at origination and equally sensitive to local housing shocks...

The Long-Run Effects of School Racial Diversity on Political Identity

Jan. 21, 2022

Abstract How do early-life experiences shape political identity? We examine the end of race-based busing in Charlotte-Mecklenburg Schools, an event that led to large changes in school racial composition. Using administrative data, we compare party affiliation in adulthood for students who had lived on opposite sides of newly drawn school...

The Chronic Uncertainty of American Indian Property Rights

Jan. 7, 2021

Institutions are the stuff of social and economic life. The importance of understanding the role of institutions in economic growth is now widely appreciated. The Journal of Institutional Economics is devoted to the study of the nature, role and evolution of institutions in the economy, including firms, states, markets, money,...

Regulating an Experience Good Produced in the Formal Sector of a Developing Country when Consumers Cannot Identify Producers

Dec. 14, 2020

Stephen W. Salant, Timothy James McQuade and Jason Winfree Review of Development Economics, 16(4): 512-526, 2012. Tilman Börgers and Timothy James McQuade The B.E. Journal of Theoretical Economics, 7(1): 2007. In developing countries, consumers can buy many goods either in formal markets or in informal markets and decide where to...

Markets with Untraceable Goods of Unknown Quality: Beyond the Small-Country Case

Dec. 14, 2020

Stephen W. Salant, Timothy James McQuade and Jason Winfree Journal of International Economics 100: 112-119, 2016. Abstract When importing durables and nondurables, consumers often cannot discern quality prior to purchase. If they cannot also identify the individual producer, exporters have diminished incentives to produce high quality goods. To raise the...

Who Pays for Rent Control? Heterogeneous Landlord Response to San Francisco’s Rent Control Expansion

Dec. 14, 2020

American Economic Review P&P, 109: 377–380, 2019. Rebecca Diamond Tim McQuade Franklin Qian AEA PAPERS AND PROCEEDINGS VOL. 109, MAY 2019 (pp. 377-80) Using a 1994 law change, we exploit quasi-experimental variation in the assignment of rent control in San Francisco to study which types of landlords bear the burden...

Idiosyncratic risk of House Prices: Evidence from 26 Million Home Sales

Dec. 14, 2020

Authors: Liang Peng and Thomas G. Thibodeau This paper uses about 26 million home sales to measure house price idiosyncratic risk for 7,580 U.S. zip codes during three periods: (1) when the U.S. housing market was stable (1996 to 2000), (2) booming (2001 to 2007), and (3) busting (2007 to...

Mortgage Design in an Equilibrium Model of the Housing Market

Dec. 14, 2020

How can mortgages be redesigned to reduce housing market volatility, consumption volatility, and default? How does mortgage design interact with monetary policy? We answer these questions using a quantitative equilibrium life cycle model with aggregate shocks, long-term mortgages, and an equilibrium housing market, focusing on designs that index payments to monetary policy.

Who Wants Affordable Housing in Their Backyard? An Equilibrium Analysis of Low- Income Property Development

Dec. 1, 2020

Journal of Political Economy, 127:3: 1063-1117, 2019. Rebecca Diamond & Timothy McQuade We nonparametrically estimate spillovers of properties financed by the Low Income Housing Tax Credit (LIHTC) onto neighborhood residents by developing a new difference-in-differences style estimator. LIHTC development revitalizes low-income neighborhoods, increasing house prices 6.5%, lowering crime rates, and...

The Effects of Rent Control Expansion on Tenants, Landlords, and Inequality: Evidence from San Francisco

Nov. 14, 2020

American Economic Review, 109:9: 3365-3394, 2019. By Rebecca Diamond, Tim McQuade, and Franklin Qian* Using a 1994 law change, we exploit quasi-experimental variation in the assignment of rent control in San Francisco to study its impacts on tenants and landlords. Leveraging new data tracking individuals’ migration, we find rent control...