About Jaime P. Luque
Jaime P. Luque is Associate Professor of Economics at ESCP Europe (Madrid campus), where he holds the BNP Paribas Professorship in Real Estate. Prior to joining ESCP in July 2018, he was an Assistant Professor of Real Estate at the University of Wisconsin-Madison School of Business.
Jaime’s main academic research applies general equilibrium theory to financial and real estate markets. He has conducted research on the consequence of repo and rehypothecation on security pricing and market pressures. This line of research evolved towards the understanding of leverage dynamics, security bubbles, anomalies in currency markets, and banks’ portfolio rebalancing in sovereign debt crises.
Jaime has also investigated different issues related to housing affordability, including subprime mortgage lending, Tax Increment Financing (TIF), Low Income Housing Tax Credits (LIHTC), and mixed income communities. His book Affordable Housing Development published by Springer provides insights and practical demonstration of important financial tools often necessary to the financial feasibility of affordable housing projects, including TIF and LIHTC.
Jaime’s research has been published in journals such as Journal of Economic Theory, Journal of Public Economics, Economic Theory, Real Estate Economics, and Regional Science and Urban Economics. He has also written opinion pieces for the Financial Times, Expansion, La Repubblica, and the Huffington Post, as well as for the Vox.eu, Eurointelligence and The Conversation economics op-ed sites.
Jaime's teaching specializations include real estate finance, real estate economics, urban economics, and macroeconomics. He has taught in the MBA, MSc and BBA programs. Jaime is the recipient of the 2017 Ideas Worth Teaching Award by The Aspen Institute Business and Society Program for his educational innovations to address affordable housing development.
|Present||Associate Professor, ESCP Europe ‐ Madrid Campus|
General equilibrium applied to financial and real estate markest
Professional Service and Affiliations
|Faculty Fellow, Center for Financial Security, University of Wisconsin-Madison||Faculty Director, Institute of Real Estate Finance and Management|
Honors and Awards
- 2017 "Ideas Teaching Award" by the Aspen Institute
- Real Estate Finance
- Regional and Urban Economics
ESCP Europe Business School
Calle Arroyofresno 1
Publications and working papers (18)
Developers, Wall Street and the Taxmen: A Theory of Real Estate Development . (2018)
We propose a general equilibrium model of commercial real estate (CRE) development in a multi-jurisdictions economy with segmented commercial good and equity markets. The CRE assets' capital structures and cash flows, the prices of equity, ...
Mortgage Availability and Homeownership in the Low Income Housing Market: The Role of Credit Scoring Technologies . (2018)
We study the role of credit scoring technologies (CSTs) in affecting the flow of capital into the low-income housing market. Local traditional banks (TBs) and remote "originate-to-distribute" non-bank lenders (NBs) compete for creditworthy non-prime borrowers. ...
Assessing the Role of TIF and LIHTC in an Equilibrium Model of Affordable Housing Development Regional Science and Urban Economics (forthcoming) (2018)
The goal of this paper is to understand the impact of the Tax Incremental Financing (TIF) and the Low Income Housing Tax Credit (LIHTC) programs in an equilibrium model of affordable housing development. A TIF ...
Cross-listed Securities and Multiple Exchange Memberships B.E. Journal of Theoretical Economics (2018)
The previous literature on general equilibrium has assumed that all traders belong to a single market. However, traders often participate in more than one exchange to diversify their portfolios. Moreover, there is evidence that the ...
Provision of Local Public Goods in Mixed Income Communities Journal of Housing Economics (forthcoming) (2018)
Motivated by the success and wide implementation of the Mixed Income Housing model in the United States and other developed countries, we provide a spatial equilibrium model of jurisdiction formation to understand how jurisdictions composed ...
Cross-border Residential Mortgage Lending: Theory and Evidence from the European Sovereign Debt Crisis Real Estate Economics (forthcoming) (2017)
We examine bank strategies to rebalance residential mortgage portfolios toward other geographical regions in the context of the European sovereign debt crisis. For banks in Greece, Ireland, Cyprus, Italy, Portugal, and Spain (GICIPS), we find ...
Online Appendix to "Cross-border Residential Mortgage Lending: Theory and Evidence from the European Sovereign Debt Crisis", forthcoming in Real Estate Economics Real Estate Economics (2017)
This Online Appendix contains supplementary material for the paper "Cross-Border Residential Lending: Theory and Evidence from the European Sovereign Debt Crisis" (forthcoming in Real Estate Economics). It starts with the proofs of Lemmas 1, 2, ...
A Volatility-based Theory of Fiscal Union Desirability Journal of Public Economics (2014)
Heterogeneous countries may rationally choose to form a currency union first, and a fiscal union later. We find, and illustrate empirically for the EMU countries, reasonable volatility conditions under which this sequencing in the deepening ...
Did the Euro Change the Effect of Fundamentals on Growth and Uncertainty? B. E. Journal of Macroeconomics (2014)
We present empirical evidence on whether the introduction of the euro has changed the effect of economic fundamentals on the growth rates of euro countries' GDPpc and GDPpc volatility. We find that there is a ...
Wages, local amenities and the rise of the multi-skilled city Annals of Regional Science (2014)
This paper examines a set of necessary and sufficient conditions under which equilibrium involves mixing multiple types of workers in cities. Multi-skilled cities emerge if workers gain more from labor complementarities than they lose if ...
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 also job opportunities. In a context of multiple types of consumers, labor complementarities, and anonymous crowding, heterogeneous populated communities form ...
Securities Market Theory: Possession, Repo and Rehypothecation Journal of Economic Theory (2012)
By 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 ...
Rays of Research on Real Estate Development (Business Expert Press) (2016)
The process of real estate development in an urban landscape is multi-faceted and multidisciplinary in nature for a variety of reasons. Although there is often the misconception that real estate development is an endeavor pursued ...
Popular Writing (16)
Putting Affordable Housing at the Center of Real Estate Education Influence Business Education - The Aspen Institute (2019)
As one of the defining global challenges of the 21st century, inequality is prompting scholars to re-think decades-long consensus around issues of economic opportunity and place. In his University of Wisconsin-Madison course Urban and Regional Economics, Jaime ...
Why ESCP Europe will become a top research institution in the fields of real estate and housing economics? ESCP Europe (2019)
Real estate plays an integral role in the economy. It creates places to live and spaces for business. It also contributes to the financial industry by providing a permanent source of revenue to investors.Well-known examples of ...
Aspen Institute Recognizes WSB's Urban and Regional Economics Course with 2017 Ideas Worth Teaching Award Wisconsin School Of Business News (2018)
Jaime Luque was named a 2017 Ideas Worth Teaching Award winner by The Aspen Institute Business and Society Program. He is being recognized for a portion of his Real Estate 420: Urban and Regional Economics course—an assignment ...