Wisconsin School of Business

Jaime Luque

Assistant Professor - Real Estate & Urban Land Economics

Jaime Luque joined the Wisconsin School of Business as assistant professor in the Department of Real Estate and Urban Land Economics in September 2012. Jaime has previously taught at the Department of Economics at the Carlos III University of Madrid.

Jaime’s academic research focuses on diverse issues, including repo, security leverage, central banking, market microstructure, international real estate, mortgage markets, and urban land economics.

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

Selected Published Journal Articles


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., Morelli, M., & Tavares, J. (2014). A Volatility-based Theory of Fiscal Union Desirability. Journal of Public Economics (112), 1-11.
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. (2013). Heterogeneous Tiebout Communities with Private Production and Anonymous Crowding.
Article AbstractThis paper provides a general equilibrium model where jurisdictions offer not only public goods, but also job opportunities. In a context of multiple types of consumers, labor complementarities, and anonymous crowding, heterogeneous populated communities form in equilibrium with an endogenous wage system that is labor-type and jurisdiction-type dependent. Equilibrium jurisdiction structures depend on the relative scarcity of labor types, unlike the situation in Berglas' (1976) partial equilibrium analysis. For a large economy, we prove that equilibrium exists and that the set of equilibria is equivalent to the core.
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.
Article AbstractBy introducing repo markets we understand how agents need to borrow issued securities before shorting them: (re)-hypothecation is at the heart of shorting. Non-negative amounts of securities in the box of an agent (amounts borrowed or owned but not lent on) can be sold, and recursive use of securities as collateral allows agents to leverage their positions. A binding box constraint induces a liquidity premium: the repo rate becomes special and the security price higher than expected discounted cash-flows. Existence of equilibrium is guaranteed under limited re-hypothecation, a situation secured by (current or proposed) institutional arrangements.
Journal of Economic Theory (147), 477-500. doi: 10.1016/j.jet.2010.11.004.

Presentations


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
Course Description Urban economics is the study of cities, of the economic activities therein, and of the determinants of those activities. To an economist, urban economics is characterized by the introduction of space and location to microeconomics. To a real estate practitioner, urban economics is to real estate as physics is to engineering. Like businessmen and women, urban economists find their boundaries of enquiry and activity expanding. By the end of the course, students must be able to answer the following questions by providing the main economic intuition, a numerical example or intuitive figures, and also by supporting their theoretical arguments with empirical facts. • Learn stylized facts about cities, their sizes and types, and their contributions to economic and social development • Understand why space and location matter and why cities exist in the first place with an emphasis on the role of trade, economies of scale, and agglomeration effects • Understand the determinants of land prices • Understand the “limits-to-growth” • Understand the impact of regulations on urban development • Learn about the role infrastructure plays in the modern city and in real estate markets with an emphasis on transportation • Understand local and national drivers of housing and real estate activity
(RES 420), Fall .

Real Estate Finance
Course Description Real estate financial markets are rapidly changing, with new instruments and ideas introduced every day. The course provides a broad coverage of real estate investment, finance, and valuation. In particular, we study 1) different measures of investment performance, 2) the impact of the financing decision on real estate investment risks and return, and 3) various real estate financing techniques. In the “knowing” front, I highlight the following items: • Practice the valuation of revenue generating properties by applying sound asset pricing methods and using Excel to perform pro-forma analysis • Learn how to design mortgages that meet the needs of different investors • Practice the pricing of mortgages when default and prepayment are possibilities • Make optimal refinancing decisions • Understand the implications of different capital structures in real estate assets • Understand the implications of leverage in real estate
(RES 410), Fall .



Editorial and Reviewing Activities


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


Photograph of Jaime Luque

Jaime Luque

 
Assistant Professor | Real Estate & Urban Land Economics
(608) 265-5322
5259 Grainger Hall