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    <link>https://hdl.handle.net/10419/64125</link>
    <description />
    <pubDate>Sat, 09 May 2026 19:58:12 GMT</pubDate>
    <dc:date>2026-05-09T19:58:12Z</dc:date>
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      <title>Homeowners insurance and the transmission of monetary policy</title>
      <link>https://hdl.handle.net/10419/312410</link>
      <description>Title: Homeowners insurance and the transmission of monetary policy
Authors: Damast, Dominik; Kubitza, Christian; Sørensen, Jakob Ahm
Abstract: We document a novel transmission channel of monetary policy through the homeowners insurance market. On average, contractionary monetary policy shocks result in higher homeowners insurance prices. Using granular data on insurers' balance sheets, we show that this effect is driven by the interaction of financial frictions and the interest rate sensitivity of investment portfolios. Specifically, rate hikes reduce the market value of insurers' assets, tightening insurers' balance sheet constraints and increasing their shadow cost of capital. These frictions in insurance supply amplify the effects of monetary policy on real estate and mortgage markets by making housing less affordable. We find that monetary policy shocks have a stronger impact on home prices and mortgage applications when local insurers are more sensitive to interest rates. This channel is particularly pronounced in areas where households face high climate risk exposure. Our findings highlight the role of insurance markets in amplifying macroeconomic shocks and the interconnections between homeowners insurance, residential real estate, and mortgage lending</description>
      <pubDate>Wed, 01 Jan 2025 00:00:00 GMT</pubDate>
      <guid isPermaLink="false">https://hdl.handle.net/10419/312410</guid>
      <dc:date>2025-01-01T00:00:00Z</dc:date>
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    <item>
      <title>Shaping inequality and intergenerational persistence of poverty: Free college or better schools</title>
      <link>https://hdl.handle.net/10419/294852</link>
      <description>Title: Shaping inequality and intergenerational persistence of poverty: Free college or better schools
Authors: Krueger, Dirk; Ludwig, Alexander; Popova, Irina
Abstract: We evaluate the aggregate, distributional and welfare consequences of alternative government education policies to encourage college completion, such as making college free and improving funding for public schooling. To do so, we construct a general equilibrium overlapping generations model with intergenerational linkages, a higher education choice as well as a multi-stage human capital production process during childhood and adolescence with parental and government schooling investments. The model features rich cross-sectional heterogeneity, distinguishes between single and married parents, and is disciplined by US household survey data on income, wealth, education and time use. Studying the transitions induced by unexpected policy reforms we show that the "free college" and the "better schools" reform generate significant welfare gains, which take time to materialize and are lower in general than in partial equilibrium. It is optimal to combine both reforms: tuition subsidies make college affordable even for children from poorer parental backgrounds and better schools increase human capital thereby reducing dropout risk.</description>
      <pubDate>Mon, 01 Jan 2024 00:00:00 GMT</pubDate>
      <guid isPermaLink="false">https://hdl.handle.net/10419/294852</guid>
      <dc:date>2024-01-01T00:00:00Z</dc:date>
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      <title>Homeownership rates, housing policies, and co-residence decisions</title>
      <link>https://hdl.handle.net/10419/273558</link>
      <description>Title: Homeownership rates, housing policies, and co-residence decisions
Authors: Grevenbrock, Nils; Ludwig, Alexander; Siassi, Nawid
Abstract: Homeownership rates differ widely across European countries. We document that part of this variation is driven by differences in the fraction of adults co-residing with their parents. Comparing Germany and Italy, we show that in contrast to homeownership rates per household, homeownership rates per individual are very similar during the first part of the life cycle. To understand these patterns, we build an overlapping-generations model where individuals face uninsurable income risk and make consumption-saving and housing tenure decisions. We embed an explicit intergenerational link between children and parents to capture the three-way trade-off between owning, renting, and co-residing. Calibrating the model to Germany we explore the role of income profiles, housing policies, and the taste for independence and show that a combination of these factors goes a long way in explaining the differential life-cycle patterns of living arrangements between the two countries.</description>
      <pubDate>Sun, 01 Jan 2023 00:00:00 GMT</pubDate>
      <guid isPermaLink="false">https://hdl.handle.net/10419/273558</guid>
      <dc:date>2023-01-01T00:00:00Z</dc:date>
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      <title>Enhancing gradient capital allocation with orthogonal convexity scenarios</title>
      <link>https://hdl.handle.net/10419/271086</link>
      <description>Title: Enhancing gradient capital allocation with orthogonal convexity scenarios
Authors: Aigner, Philipp; Schlütter, Sebastian
Abstract: Gradient capital allocation, also known as Euler allocation, is a technique used to redistribute diversified capital requirements among different segments of a portfolio. The method is commonly employed to identify dominant risks, assessing the risk-adjusted profitability of segments, and installing limit systems. However, capital allocation can be misleading in all these applications because it only accounts for the current portfolio composition and ignores how diversification effects may change with a portfolio restructuring. This paper proposes enhancing the gradient capital allocation by adding "orthogonal convexity scenarios" (OCS). OCS identify risk concentrations that potentially drive portfolio risk and become relevant after restructuring. OCS have strong ties with principal component analysis (PCA), but they are a more general concept and compatible with common empirical patterns of risk drivers being fat-tailed and increasingly dependent in market downturns. We illustrate possible applications of OCS in terms of risk communication and risk limits.</description>
      <pubDate>Sun, 01 Jan 2023 00:00:00 GMT</pubDate>
      <guid isPermaLink="false">https://hdl.handle.net/10419/271086</guid>
      <dc:date>2023-01-01T00:00:00Z</dc:date>
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