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Cristian Badarinza

Assistant Professor (Real Estate Finance)
NUS Business School

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    I am an Assistant Professor at the National University of Singapore, a Research Fellow of the Institute of Real Estate Studies, and a Network Associate of the Centre for Economic Policy Research, London. My research interests are in the areas of real estate finance, household finance and financial economics. Previously, I have been a Postdoctoral Fellow at Saïd Business School, University of Oxford, a Research Assistant in the Monetary Policy Research Division of the European Central Bank in Frankfurt am Main. I have obtained a PhD and an MSc in Economics from Goethe University. Download CV

Reference Dependence in the Housing Market


American Economic Review. Conditionally accepted.
with Steffen Andersen, Lu Liu, Julie Marx and Tarun Ramadorai
We quantify reference dependence and loss aversion in the housing market using rich Danish administrative data. Our structural model includes loss aversion, reference dependence, financial constraints, and a sale decision, and matches key nonparametric moments, including a "hockey stick" in listing prices with nominal gains, and bunching at zero realized nominal gains. Households derive substantial utility from gains over the original house purchase price; losses affect households roughly 2.5 times more than gains. The model helps explain the positive correlation between aggregate house prices and turnover, but cannot explain visible attenuation in reference dependence when households are more financially constrained.

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Gravity, Counterparties and Foreign Investment


Journal of Financial Economics. Forthcoming.
with Tarun Ramadorai and Chihiro Shimizu
We propose a new explanation for the persistence of gravity in international investment flows based on new facts about large cross-border commercial real estate transactions. Buyers in these transactions preferentially match with counterparties from own or proximate countries; such affinity-based matching helps alleviate financial investment frictions. We set up and structurally estimate a model of capital allocation in a decentralized market with an investment friction, which delivers the price, volume, and counterparty matching patterns in the data. The model shows that if clusters of high-affinity counterparties lie along historical routes, as in the data, preferential matching can perpetuate gravity relationships.

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Research

Publications

Reference Dependence in the Housing Market
2020, with Steffen Andersen, Lu Liu, Julie Marx and Tarun Ramadorai
Conditionally accepted, American Economic Review.

Gravity, Counterparties, and Foreign Investment
with Tarun Ramadorai and Chihiro Shimizu, 2021.
Forthcoming, Journal of Financial Economics.

Mortgage Debt and Social Externalities
2019, Review of Economic Dynamics, Vol. 34, 43-60.

The Household Finance Landscape in Emerging Economies
with Vimal Balasubramaniam and Tarun Ramadorai, Annual Review of Financial Economics, 2019, Vol. 11, 109-129.

Home Away From Home? Foreign Demand and London House Prices
with Tarun Ramadorai, 2018, Journal of Financial Economics, Vol. 30(3), 532-555.

What Calls to ARMs? International Evidence on Interest Rates and the Choice of
Adjustable-Rate Mortgages
with John Y. Campbell and Tarun Ramadorai, 2018, Management Science, Vol. 64(5), 1975-2471.

The Indian Household Finance Landscape
with Vimal Balasubramaniam and Tarun Ramadorai, 2017, India Policy Forum, Vol. 13, 1-55.

International Comparative Household Finance
with John Y. Campbell and Tarun Ramadorai, 2016, Annual Review of Economics, Vol. 8, 111-144.


Working papers

The Effectiveness of Housing Collateral Tightening Policy
2019, with Sumit Agarwal and Wenlan Qian.

The Informational Role of Housing Market Liquidity
2019.

Long-Run Discounting: Evidence from the UK Leasehold Valuation Tribunal
2014, with Tarun Ramadorai.


Policy Papers

Information Flows and Disagreement
with Marco Buchmann. ECB Working Paper No. 1475.

Macroeconomic Vulnerability and Disagreement in Expectations
with Marco Buchmann. ECB Working Paper No. 1407.

News and Policy Foresight in a Macro-Finance Model of the US
with Emil Margaritov. ECB Working Paper No. 1313.

Inflation Perceptions and Expectations in the Euro Area: The Role of News
with Marco Buchmann. ECB Working Paper No. 1088.

Teaching

National University of Singapore

Portfolio and Asset Management (RE5006)
Lecturer
MSc and MBA Programs

Computational Thinking and Programming for Real Estate (RE2708)
Lecturer
BA Program

Research Methodology in Real Estate (RE6004)
Lecturer
PhD Program

Real Estate Finance (GEK2013)
Lecturer
Undergraduate module (University-wide)
1st Semester, 2016 to 2018.


Said Business School, University of Oxford

Asset Pricing
Teaching Assistant
MSc Program in Financial Economics
Hilary Term, 2013 and 2014.


Goethe University, Frankfurt am Main

Advanced Macroeconomics
Teaching Assistant
PhD Program in Economics
MSc Program in Quantitative Economics
Winter Term, 2010 to 2012

Macroeconomics
Teaching Assistant
BSc Program in Economics
Summer Term, 2011 and 2012

Household Finance Research Seminar
Co-Lecturer
BSc Program in Economics
Winter Term, 2011

Static Optimization
Lecturer
PhD Program in Economics
Winter Term, 2009 to 2011

Contact

NUS Business School
15 Kent Ridge Drive
Office No. 7-54
Singapore 119245