Pierre Mabille

Welcome! I am an Assistant Professor of Finance at INSEAD.

Research interests: household finance, real estate, asset pricing, macroeconomics.

Curriculum Vitae

Email: pierre.mabille@insead.edu


The Missing Home Buyers: Regional Heterogeneity and Credit Contractions (SSRN)

Review of Financial Studies, 2022

CEPR-TFI Household Finance Award, 2020

AREUEA Homer Hoyt Dissertation Award (honorable mention), 2021

Media: Knowledge

Affordable Housing and City Welfare (NBER WP 25906, SSRN), with Jack Favilukis and Stijn Van Nieuwerburgh

Review of Economic Studies, 90(1), January 2023, pp. 293-330

Media: VoxEU, FT Business School Insider, MarketWatch, Global Housing Watch, Ideas At Work, Gothamist, LA Times, NY Daily News, The Urbanist, Knowledge

Internationalization versus Regionalization in the Emerging Stock Markets, with Virginie Coudert and Karine Herve

International Journal of Economics and Finance, 20(1), January 2015, pp. 16-27

Working Papers

Financial Constraints and the Racial Housing Gap (SSRN), with Arpit Gupta and Christopher Hansman

Abstract: We highlight the contribution of financial constraints to persistent disparities in wealth and access to geographic opportunities across demographic groups. We document a racial leverage gap—Black borrowers have substantially higher LTV ratios at mortgage origination, reflecting differences in pre-existing wealth and family transfers. We use a spatial life-cycle model to analyze the impacts of initial conditions on home purchase decisions, location choices, and long-term wealth accumulation for minority borrowers. Leverage constraints channel Black borrowers into less valuable housing choices and less lucrative labor markets. Targeted mortgage policies and reductions in moving frictions help close income and wealth gaps across groups.

Intermediary-Based Loan Pricing (SSRN), with Olivier Wang

Abstract: How do shocks to banks transmit to loan terms faced by borrowers on different loan markets? In our model of multidimensional contracting between heterogeneous risky borrowers and intermediaries with limited lending capacity, loan terms depend on loan demand elasticities and default elasticities. These two sufficient statistics predict how the cross-section of loan terms and bank risk react to changes in capital and funding costs. Using empirical estimates, they explain the heterogeneous transmission of shocks across loan markets and borrower risk categories. Accounting for non-price loan terms is important for dynamics because their endogenous response can increase the persistence of credit crises.

Aggregate Precautionary Savings Motives

Abstract: This paper analyzes the effect of aggregate risk on households' precautionary savings, a new channel that complements the standard idiosyncratic precautionary motive. I build a general equilibrium model with incomplete markets, heterogeneous households, and aggregate risk to decompose the drivers of precautionary savings. The precautionary motive due to credit supply shocks is large, at odds with received wisdom about the low costs of aggregate fluctuations. It is larger for middle-class households, who are too rich to benefit from social programs but too poor to have enough liquid assets. Aggregate precautionary motives are important because they imply that aggregate shocks can have permanent effects even when they are temporary.