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

Publications

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

Review of Financial Studies, forthcoming

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, forthcoming

Media: VoxEU, 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, Vol. 20(1), pp. 16-27, 2015

Working Papers

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

Abstract: How do shocks to banks transmit to the price and non-price terms of loans? 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 terms is also important for dynamics because their endogenous response can increase the persistence of credit crises.

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

Abstract: We highlight the role of financial constraints in contributing 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 worse initial conditions on the home purchase decisions, spatial allocation, and long-term wealth accumulation of minority borrowers. Wealth and income outcomes for Black borrowers are substantially improved by relaxing LTV constraints and reducing moving frictions.

Credit Supply Risk and Precautionary Savings

Abstract: Changes in credit supply induce large and frequent variations in households' access to unsecured debt. They generate a novel financial precautionary motive, which compounds the microeconomic motive associated with idiosyncratic income risk, as borrowers deleverage and accumulate safe assets to hedge against them. Using a structural model, I estimate that this motive is an important driver of household balance sheets over the business cycle. It also helps explains the historically low level of interest rates in the last decade despite consumption growth, solving a "post-Great Recession risk-free rate puzzle".