Research Interests: Empirical corporate finance, household finance, real estate
I am a Ph.D. Candidate in Finance at the Kellogg School of Management, Northwestern University. My research focuses on empirical corporate finance and household finance.
Job Market Paper
Desperate House Sellers: Distress Among Developers (Download here)
Using granular data on home builder housing developments, I provide new evidence that firms spread negative revenue shocks across projects via their internal capital markets. I analyze this question in the context of the 2006-2009 housing crisis. I show that home builders who experience large asset write-downs in one area, subsequently sell homes in unaffected, healthy housing areas at a discount, in order to raise cash quickly. In response to a 10% decline in the value of distant projects, builders cut prices of homes in unaffected counties by 2.2%. Consistent with the theory of internal capital markets, financially constrained firms are more likely to cut prices of homes in healthy areas in response to losses in unhealthy ones. I also find that firms smooth shocks across projects only during the crisis and not during the boom. Lastly, I show that when builders cut prices they also sell homes more quickly. These results suggest an important role for firm internal capital markets in spreading negative economic shocks across space.
Coping with Crisis: How Students Respond to the Collapse in Student Loan Securitizations
The high cost of college has led students to increasingly finance undergraduate education with a combination of government and private student loans. While federal student loans are issued directly by the government, private student loans are financed by both bank and non-bank lenders. Non-bank lenders, such as Sallie Mae, raised capital for student loans by issuing asset-backed securities (ABS). When the housing crisis led to the collapse of the ABS market in 2008, non-bank private student lenders were forced to curtail lending due to lack of financing. This paper investigates the effect of this contraction in student lending on enrollment outcomes. In particular, I investigate whether high ability financially constrained students chose to attend less expensive schools during the crisis due to credit constraints. I exploit geographic variation in dependence on non-bank financing before the crisis to determine the effect on college tuition. I measure enrollment outcomes at the school level, and find that tuition declines in states which were more exposed to securitized financing. This suggests that the ABS collapse led students to alter their enrollment decisions due to credit constraints..