English, Article, Journal or magazine article edition: Hedging Housing Risk in London François Ortalo-Magné; Francois Ortalo-Magne; Matteo Iacoviello

User activity

Share to:
 
Bookmark: http://trove.nla.gov.au/version/45263
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Hedging Housing Risk in London
Author
  • François Ortalo-Magné
  • Francois Ortalo-Magne
  • Matteo Iacoviello
Physical Description
  • preprint
Notes
  • RePEc:wop:wisule:02-03
  • This paper investigates the benefits of allowing households to compensate the portfolio distortion due to their housing consumption through investments in housing price derivatives. Focusing on the London market, we show that a major loss from over-investment in housing is that households are forced to hold a very risky portfolio. However, the strong performance of the London housing market means that little is lost in terms of expected returns. Even households with limited wealth are better off owning their home rather than renting and investing in financial assets, as long as they are willing to face the financial risk involved. In this context, access to housing price derivatives would benefit most poor homeowners looking to limit their risk exposure. It would also benefit wealthier investors looking for the high returns provided by housing investments without the costs of direct ownership of properties. Comparisons with French, Swedish and US data provide a broader perspective on our findings.
  • portfolio risk, house price index, hedging
  • RePEc:boc:bocoec:539
  • No Abstract Available.
  • RePEc:fmg:fmgdps:dp415
Language
  • English
Contributed by
OAIster

Get this edition

  • Set up My libraries

    How do I set up "My libraries"?

    In order to set up a list of libraries that you have access to, you must first login or sign up. Then set up a personal list of libraries from your profile page by clicking on your user name at the top right of any screen.

  • All (1)
  • Unknown (1)
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.

User activity


e.g. test cricket, Perth (WA), "Parkes, Henry"

Separate different tags with a comma. To include a comma in your tag, surround the tag with double quotes.

Be the first to add a tag for this edition

Be the first to add this to a list

Comments and reviews

What are comments? Add a comment

No user comments or reviews for this version

Add a comment