Bonding with Risk: Corporate Investment and Savings in Risky Financial Assets
with Stefano Sacchetto [SSRN] [Replication Package]
Journal of Financial Economics, 2026, 181, 104283
Bank Monopsony Power and Stock Market Spillovers on Deposit Markets [SSRN]
Journal of Financial Intermediation, 2026, 66, 101198
Stock Comovement and Financial Flexibility
with Anil Kumar, Stefano Sacchetto, and Carles Vergara-Alert [SSRN]
Journal of Financial and Quantitative Analysis, 2024, 59(3), 1141-1184
The Heterogeneous Effects of Financial Wealth on Housing Demand
with Christian Eufinger
Presentations: AFA 2026 JFMP Workshop, Philadelphia; 2nd Boca Finance and Real Estate Conference, Boca Raton; 32nd AEFIN Finance Forum, Pamplona*; FMA European Conference 2025, Limassol; NEOMA Business School Brownbag (2024)
Abstract: We document the connection between equity markets and local housing markets in the United States through the channel of household financial wealth. Equity market fluctuations affect household financial wealth and subsequently housing demand. Household financial wealth exposes local housing markets to equity market risks, increases housing market betas, expected housing returns, and drives up the comovement between local housing and equity markets. Households exhibit heterogeneous housing demand elasticities with respect to financial wealth, which rise with income levels---thereby amplifying housing inequality during market upswings. Overall, our findings highlight financial wealth as a key driver of local housing market integration and heterogeneous household asset allocation behavior as a major contributor to housing inequality.
From Stocks to Bricks: The Housing Market Effects of Dividend Tax Hikes
with Christian Eufinger, and Martin Jacob
Presentations: AREUEA International Conference 2025, Barcelona*
Abstract: This paper examines how dividend taxes affects real estate markets. In theory, higher dividend taxes can affect household portfolio allocation by prompting a shift from equity investments toward real estate assets. We exploit both variation in federal U.S. dividend tax schedules and cross-county and cross-income-group exposure to the 2013 U.S. dividend tax hike. Using both aggregate county and county–income-group level mortgage data over the period 2005--2020, we find that higher marginal dividend tax rates are associated with greater mortgage demand and with higher house price growth, with in particular in supply-constrained housing markets. The event-study difference-in-differences design around the 2013 reform confirms these patterns: affected counties with more high-income households show a significant increase in mortgage demand and in house prices. We also find evidence of increased rents, indicating spillovers into broader housing affordability. These results highlight an important consequence of capital income taxation: policies aimed at taxing equity returns can propagate into local housing markets, amplifying demand and exacerbating affordability pressures, especially in areas with limited housing supply.