Professor François Ortalo-Magné is the Albert O. Nicholas Dean of the Wisconsin School of Business.
His research interests include housing, agricultural land markets and policies, and international real estate.
Ortalo-Magné has contributed to the understanding of the housing market through his theoretical work on dynamic equilibrium housing models and through the collection and analysis of novel data sets that provide unique insights into the housing transaction process. He is also interested in the drivers of farmland prices and has written extensively on agricultural policy. He is called upon regularly by policymakers for contributions to housing and agricultural policy debates.
His research has been published in the Review of Economic Studies, the European Economic Review, the Journal of Urban Economics, Economic Policy, the American Journal of Agricultural Economics, the Journal of Real Estate Finance and Economics, and the Journal of Housing Economics. He has also written a book on agricultural policy reform that was published both in French and Japanese.
He is on the editorial board of the Journal of Housing Economics and on the board of the American Real Estate and Urban Economics Association.
At Wisconsin, he leads efforts to expose students to the world of international real estate both through his teaching and international field trips. In 2010, he led the creation of the innovative Global Real Estate Master (GREM) that combines the strengths of three top-ranked international business schools with the real estate expertise at the Wisconsin School of Business.
Prior to joining the University of Wisconsin-Madison, Ortalo-Magné was in the Department of Economics at the London School of Economics. He holds a Ph.D. in economics from the University of Minnesota.
Selected Accepted Journal Articles
Ortalo-Magné, F., & Prat, A. (2013). On the Political Economy of Urban Growth: Homeownership Versus Affordability.
American Economic Journal: Microeconomics
We study the equilibrium properties of an overlapping-generation economy where agents choose where to locate, and how much housing to own, and city residents vote on the number of new building permits every period. Under-supply of housing persists in equilibrium under conditions we characterize. City residents invest in housing because they expect their investment to be protected by a majority of voters opposed to urban growth. They vote against growth because they have invested in local housing. This vicious cycle between ownership and urban growth generates a tension between the common housing policy objectives of affordability for all and homeownership for most. Homeownership subsidies increase resistance to urban growth. Capturing the value of new building permits and distributing the proceeds to residents may move the economy away from a welfare-dominated no-growth equilibrium.
Selected Published Journal Articles
Davis, M., & Ortalo-Magné, F. (2011). Household Expenditures, Wages, Rents. Review of Economic Dynamics
(14), 248-261. doi: 10.1016/j.red.2009.12.003.
Ortalo-Magné, F., Goodwin, B., & Mishra, A. (2011). The Buck Stops Where? The Distribution of Agricultural Subsidies. NBER Working Paper, 49.
Ortalo-Magné, F., Hendel, I., & Nevo, A. (2009). The Relative Performance of Real Estate Marketing Platforms: MLS versus FSBOMadison.com. American Economic Review
(99), 1878-98. doi: 10.1257/aer.99.5.1878.
Ortalo-Magné, F., & Rady, S. (2008). Heterogeneity within Communities: A Stochastic Model with Tenure Choice. Journal of Urban Economics
(64), 1-17. doi: 10.1016/j.jue.2008.01.001.
Ortalo-Magné, F., & Rady, S. (2006). Housing Market Dynamics: On the Contribution of Income Shock and Credit Constraints. Review of Economic Studies
(73), 459-485. doi: 10.1111/j.1467-937X.2006.383_1.x.
Ortalo-Magné, F., & Rady, S. (2004). Housing Transactions and Macroeconomic Fluctuations: A Case Study of England and Wales. Journal of Housing Economics
(13), 287-303. doi: 10.1016/j.jhe.2004.09.005.
Davis, M., Ortalo-Magné, F., & Rupert, P. (2007). What’s Really Happening in Housing Markets?. Economic Commentary, Federal Reserve Bank of Cleveland (July 2007), 4.
AEA / AREUEA joint Session ( 2011 ) Discussion of "The Costs of Agglomeration: Land Prices in French Cities"
City University of Hong Kong - Dept of Economics ( 2010 ) "On the Political Economy of Urban Growth: Homeownership against Affordibility "
NYU Stern school of Business Finance Dept Seminar ( 2010 ) "Spatial Asset Pricing: A First Step "
Housing Urban Labor Macro Conference ( 2010 ) Discussion of " The Housing Market(s) in San Diego" by Tim Landvoigt, Monika Piazzesi, and Martin Schneider)
Wash U Olin School of Business - Dept of Economics ( 2010 ) "On the Political Economy of Urban Growth: Homeownership against Affordibility "
Workshop on Urban Economics ( 2010 ) "On the Political Economy of Urban Growth: Homeownership against Affordibility "
Workshop on Urban Economics ( 2010 ) Discussion of "The Homeownership Gap" by Andrew Haughwout, Richard Peach and Joseph Tracy
Summer Workshop in Macro Finance ( 2010 ) "Spatial Asset Pricing: A First Step "
London School of Economics - Department of Geography Seminar ( 2010 ) "On the Political Economy of Urban Growth: Homeownership against Affordibility "
INCAE Finance Dept Seminar ( 2010 ) "Spatial Asset Pricing: A First Step "
Rays of Research ( 2009 ) Housing for Smarties
Federal Reserve System Conference on Housing and Mortgage Markets ( 2008 ) Household Expenditures, Wages, Rents
University of Texas-Austin seminar ( 2008 ) Household Expenditures, Wages, Rents
Federal Reserve Bank of San Francisco seminar ( 2008 ) Household Expenditures, Wages, Rents
Lincoln Institute of Land Policy ( 2008 ) Household Expenditures, Wages, Rents
Applied Micro Seminar ( 2007 ) Household Expenditures, Wages, Rents
RSAI Annual North American Meeting ( 2007 ) Household Expenditures, Wages, Rents
University of California - Berkeley Seminar ( 2007 ) Household Expenditures, Wages, Rents
Learning/Teaching Oriented Publications
Ortalo-Magné, F. (2011). Trading Frictions and House Price Dynamics. Journal of Money Credit and Banking
(43), 305-309. doi: 10.1111/j.1538-4616.2011.00436.x.
Ortalo-Magné, F., , H., & , N. (2007). One city's Home Sellers Do Better on Their Own. American Economic Review
Counselors of Real Estate
Royal Institution of Chartered Surveyors
Council of Economic Advisors tothe French Ministry of the Ecology, Sustainable Development, Transports and Housing