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. It has received
comments in the Financial Times and La Repubblica, as well as the Vox.eu and
Eurointelligence economics op-ed sites. 



A Volatility-based Theory of Fiscal Union Desirability (with Massimo Morelli and José Tavares), Journal of Public Economics (2014)

Heterogeneous countries may rationally choose to form a currency union first, and a fiscal union...



Heterogeneous Tiebout Communities with Private Production and Anonymous Crowding, Regional Science and Urban Economics (2013)

This paper provides a general equilibrium model where jurisdictions offer not only public goods, but...



Securities Market Theory: Possession, Repo and Rehypothecation (with Jean-Marc Bottazzi and Mario Pascoa), Journal of Economic Theory (2012)

By introducing repo markets we understand how agents need to borrow issued securities before shorting...


Working papers


Dollar Shortage, Central Bank Actions, and the Cross Currency Basis (with Jean-Marc Bottazzi, Mario Pascoa, and Suresh Sundaresan) (2014)

Cross-currency basis, which captures the deviations from covered interest rate parity, reflects the relative value...



Did the Euro Change the Effect of Fundamentals on Growth and Uncertainty? (with Abderrahim Taamouti), UC3M Working Paper 12-21 (2013)

We present empirical evidence on whether the introduction of the euro has changed the effect...



Economic Frontiers of Mixed Residential Neighborhoods (with Elad Dokow) (2012)

Should jurisdiction frontiers reflect their geographical and political borders, or should jurisdictions overlap and account...



Exchanges as Trading Clubs: Endogenous Market Incompleteness and Fragmentation (with Marta Faias) (2011)

We use club theory for the first time to provide an equilibrium setting where traders...




The euro and economic uncertainty in debt crises (with Abderrahim Taamouti), VoxEU.org (2012)

When economies are on the down, uncertainty is on the up – particularly during a...



The case for a fiscal union beyond the Eurobond (with Massimo Morelli and José Tavares), Eurointelligence (2011)


L'unione fiscal svolta per l'Europa (with Massimo Morelli and José Tavares), La Repubblica (2011)