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Yongheng Deng

Yongheng Deng
Professor | Real Estate and Urban Land Economics
John P. Morgridge Distinguished Chair in Business
608-262-4865
4110 Grainger Hall

Biography

Yongheng Deng is a Professor and the John P. Morgridge Distinguished Chair in Business, recipient of the 2021 Erwin A. Gaumnitz Distinguished Faculty Research Award, Director of the Real Estate Ph.D. Program, and Director of the Global Real Estate Masters Program (GREM), in the Department of Real Estate and Urban Land Economics, Wisconsin School of Business, University of Wisconsin – Madison.

Before joining the Wisconsin School of Business, Professor Deng has served as a Provost’s Chair Professor of Real Estate and Finance, Director of the Institute of Real Estate Studies, and Head of the Department of Real Estate, at the National University of Singapore (NUS). He was also a Professor in the Department of Finance at NUS Business School, and Director of the Lifecycle Financing Research Program at NUS Global Asia Institute.

Professor Deng has also been a Professor at the University of Southern California (USC), School of Policy, Planning and Development, and the Marshall School of Business. He was an Economist and Expert in the Office of Federal Housing Enterprise Oversight (OFHEO) – a financial regulator overseeing Fannie Mae and Freddie Mac – in Washington DC.

Professor Deng has chaired the World Economic Forum’s Global Agenda Council on Real Estate, and also served as a Vice-Chair of the Forum’s Global Agenda Council on Financing and Capital, Co-Chair of UN Sustainable Development Solutions Network (UN SDSN), Singapore Chapter.

He has served as the 50th President of the American Real Estate and Urban Economics Association (AREUEA), the first Asian to be elected President in the Association’s 50-year history.

Professor Deng holds a Ph.D. in Economics from the University of California at Berkeley, and a PostDoc Fellow in the Wharton Real Estate Center, The Wharton School of the University of Pennsylvania.

Professor Deng’s research pertains to a wide variety of issues in real estate finance, housing and urban economics worldwide, including asset pricing and risk analysis focusing on the mortgage, mortgage-backed security and real estate capital markets; econometric analysis of competing risks of mortgage prepayment and default with unobserved heterogeneity; climate change risks and revaluation of the real estate markets; sustainable development; political economy and policy analysis of the housing markets in China and Asia.

Professor Deng has published his research works in leading economics and finance journals such as Econometrica, Journal of Financial Economics, Management Science, Review of Finance, Journal of Urban Economics, Journal of Environmental Economics and Management, China Economic Review, European Economic Review, Capitalism and Society, Regional Science and Urban Economics, Real Estate Economics, Journal of Housing Economics, Journal of Real Estate Finance and Economics, International Real Estate Review, Journal of Money Credit and Banking, and Pacific-Basin Finance Journal.

His research works have also been cited by major media worldwide, including Wall Street Journal, New York Times, Economist Magazine, Telegraph, Forbes, People’s Daily, and more.

Research

Selected Published Journal Articles

Deng, Y. & Gu, Q. & He, J. (2021). Reinforcement Learning and Mortgage Partial Prepayment Behavior Pacific-Basin Finance Journal

Deng, Y. & Agarwal, S. & Wang, Y. & Ang, S. (2021). Mortgage Brokers and the Effectiveness of Regulatory Oversights Management Science

Deng, Y. & Hu, M. & Lee, A. (2021). Melting Pot or Salad Bowl: Cultural Distance and Housing Investments Real Estate Economics

An, X. & Deng, Y. & Gabriel, S. (2021). Default Option Exercise over the Financial Crisis and Beyond Review of Finance

Agarwal, S. & Deng, Y. & He, J. (2020). Time Preferences, Mortgage Choice and Mortgage Default International Real Estate Review

Deng, Y. (2020). Why the World’s ‘Superstar Cities’ Are Not Sustainable WSB Forward Thinking Faculty Blog

Deng, Y. & Qin, Y. & Wu, J. (2019). Editor’s Introduction: Superstar Cities and the Globalization Pressures on Affordability Journal of Housing Economics

Deng, Y. & Gyourko, J. & Li, T. (2019). Singapore’s Cooling Measures and Its Housing Market Journal of Housing Economics

Agarwal, S. & Deng, Y. & Li, T. (2019). Environmental Regulation as a Double-edged Sword for Housing Markets: Evidence from the NOx Budget Trading Program Journal of Environmental Economics and Management

Deng, Y. & Liu, X. & Wei, S. (2018). One Fundamental and Two Taxes: When Does a Tobin Tax Reduce Financial Price Volatility? Journal of Financial Economics

Deng, Y. & Girardin, E. & Joyeux, R. (2018). Fundamentals and the Volatility of Real Estate Prices in China: A Sequential Modelling Strategy China Economic Review

Yang, J. & Yu, Z. & Deng, Y. (2018). Housing Price Spillovers in China: A High-Dimensional Generalized VAR Approach. Regional Science and Urban Economics

Deng, Y. & Girardin, E. & Joyeux, R. & Shi, S. (2017). Did Bubbles Migrate from the Stock to the Housing Market in China between 2005 and 2010? Pacific Economic Review

Deng, Y. & Gyourko, J. & Wu, J. (2017). Evaluating Risk across Chinese Housing Markets VoxChina

Deng, Y. & Hu, M. & Srinivasan, A. (2017). Information Asymmetry and Organizational Structure: Evidence from Real Estate Investment Trusts Journal of Real Estate Finance and Economics

Deng, Y. (2017). The Risks in China’s Real Estate Market: The Current Status and the Future Tsinghua Financial Review

Zhu, H. & Deng, Y. & Zhu, R. & He, X. (2016). Fear of Nuclear Power? Evidence from Fukushima Nuclear Accident and Land Market in China Regional Science and Urban Economics

An, X. & Deng, Y. & Fisher, J. & Hu, M. (2016). Commercial Real Estate Rental Index: A Dynamic Panel Data Model Estimation Real Estate Economics

Wu, J. & Gyourko, J. & Deng, Y. (2016). Evaluating the Risk of Chinese Housing Markets: What We Know and What We Need to Know China Economic Review

Deng, Y. & Devos, E. & Rahman, S. & Tsang, D. (2016). The Role of Debt Covenants in the Investment Grade Bond Market – The REIT Experiment Journal of Real Estate Finance and Economics

Agarwal, S. & Deng, Y. & Luo, C. & Qian, W. (2016). The Hidden Peril: The Role of the Condo Loan Market in the Recent Financial Crisis Review of Finance

Deng, Y. & Sing, T. & Ren, C. (2015). The Story of Singapore’s Public Housing: From a Nation of Home-Seekers to a Nation of Homeowners (in Chinese) The Future of Public Housing: Ongoing Trends in the East and the West (in Chinese)

An, X. & Deng, Y. & Nichols, J. & Sanders, A. (2015). What is Subordination About? Credit Risk and Subordination Levels in Commercial Mortgage-backed Securities Journal of Real Estate Finance and Economics

Wu, J. & Deng, Y. (2015). Intercity Information Diffusion and Price Discovery in Housing Markets: Evidence from Google Searches Journal of Real Estate Finance and Economics

Deng, Y. & Morck, R. & Wu, J. & Yeung, B. (2015). China’s Pseudo-monetary Policy Review of Finance

Wu, J. & Gyourko, J. & Deng, Y. (2015). Real Estate Collateral Value and Investment: The Case of China Journal of Urban Economics

Deng, Y. (2014). The Value of Land and Housing in China’s Residential Market The Oxford Companion to the Economics of China

Deng, Y. & McMillen, D. & Sing, T. (2014). Matching Indices for Thinly-Traded Commercial Real Estate in Singapore Regional Science and Urban Economics

Deng, Y. & Wu, J. (2014). Economic Returns to Residential Green Building Investment: The Developers’ Perspective Regional Science and Urban Economics

Pu, M. & Fan, G. & Deng, Y. (2014). Breakeven Determination of Loan Limits for Reverse Mortgages under Information Asymmetry Journal of Real Estate Finance and Economics

Wu, J. & Deng, Y. & Liu, H. (2014). House Price Index Construction in the Nascent Housing Market: The Case of China Journal of Real Estate Finance and Economics

Wu, J. & Deng, Y. & Huang, J. & Morck, R. & Yeung, B. (2014). Incentives and Outcomes: China’s Environmental Policy Capitalism and Society

Deng, Y. & Sing, T. & Ren, C. (2013). The Story of Singapore’s Public Housing: From a Nation of Home-Seekers to a Nation of Homeowners The Future of Public Housing: Ongoing Trends in the East and the West

Ma, S. & Deng, Y. (2013). Evaluation of Reverse Mortgage Programs in Korea Seoul Journal of Business

An, X. & Deng, Y. & Nichols, J. & Sanders, A. (2013). Local Traits and Securitized Commercial Mortgage Default Journal of Real Estate Finance and Economics

Chen, J. & Deng, Y. (2013). Commercial Mortgage Workout Strategy and Conditional Default Probability: Evidence from Special Serviced CMBS Loans Journal of Real Estate Finance and Economics

Deng, Y. & Gyourko, J. & Wu, J. (2012). Land and House Price Measurement in China Property Markets and Financial Stability

Deng, Y. & Gabriel, S. & Nishimura, K. & Zheng, D. (2012). Optimal Pricing Strategy in the Case of Price Dispersion: New Evidence from the Tokyo Housing Market Real Estate Economics

An, X. & Deng, Y. & Rosenblatt, E. & Yao, V. (2012). Model Stability and the Subprime Mortgage Crisis Journal of Real Estate Finance and Economics

Zheng, S. & Wu, J. & Kahn, M. & Deng, Y. (2012). The Nascent Market for ‘Green’ Real Estate in Beijing European Economic Review

Wu, J. & Gyourko, J. & Deng, Y. (2012). Evaluating Conditions in Major Chinese Housing Markets Regional Science and Urban Economics

Deng, Y. & Li, Z. & Quigley, J. (2012). Economic Returns to Energy-Efficient Investments in the Housing Market: Evidence from Singapore Regional Science and Urban Economics

Deng, Y. & McMillen, D. & Sing, T. (2012). Private Residential price Indices in Singapore: A Matching Approach Regional Science and Urban Economics

An, X. & Deng, Y. & Gabriel, S. (2011). Asymmetric Information, Adverse Selection, and the Pricing of CMBS Journal of Financial Economics

Deng, Y. & Fei, P. (2011). Housing Finance in China China’s Housing Reform and Outcomes

Deng, Y. & Gabriel, S. & Sanders, A. (2011). CDO Market Implosion and the Pricing of Subprime Mortgage-Backed Securities Journal of Housing Economics

Fei, P. & Ding, L. & Deng, Y. (2010). Correlation and Volatility Dynamics in REIT Returns: Performance and Portfolio Considerations Journal of Portfolio Analysis

Deng, Y. & Zhang , M. (2010). Is the Mean Return of Hotel Real Estate Stocks Apt to Overreact to Past Performance? Journal of Real Estate Finance and Economics

An, X. & Clapp, J. (2010). Omitted Mobility Characteristics and Property Market Dynamics: Application to Mortgage Termination Journal of Real Estate Finance and Economics

Deng, Y. & Gyourko, J. & Wu, J. (2010). Just How Risky are China’s Housing Markets? VoxEU, Research-Based Policy Analysis, and Commentary from Leading Economists

Ben-Shahar, D. & Deng, Y. & Sulganik, E. (2009). Property Appraisal in High-Rises: A Cooperative Game Theory Approach Journal of Housing Economics

Deng, Y. & Liu, P. (2009). Mortgage Prepayment and Default Behavior with Embedded Forward Contract Risks in China’s Housing Market Journal of Real Estate Finance and Economics

An, X. & Deng, Y. & Gabriel, S. (2009). Value Creation through Securitization: Evidence from the CMBS Market Journal of Real Estate Finance and Economics

Deng, Y. & Quigley, J. (2008). Index Revision, House Price Risk, and the Market for House Price Derivatives Journal of Real Estate Finance and Economics

An, X. & Deng, Y. & Sanders , A. (2008). Subordinations Levels in Structured Financing Handbooks in Finance: Handbook of Financial Intermediation and Banking

Deng, Y. & Fei, P. (2008). Emerging Mortgage Markets in China Mortgage Markets Worldwide

Zheng, D. & Deng, Y. & Gordon, P. & Dale-Johnson, D. (2007). An Examination of the Impact of Rent Control on Mobile Home Prices in California Journal of Housing Economics

An, X. & Bostic, R. & Deng, Y. & Gabriel, S. (2007). GSE Loan Purchases, The FHA, And Housing Outcomes In Targeted, Low-Income Neighborhoods Brookings-Wharton Papers on Urban Affairs: 2007

Clapp, J. & Deng, Y. & An, X. (2006). Unobserved Heterogeneity in Models of Competing Mortgage Termination Risks Real Estate Economics

Deng, Y. & Gabriel, S. (2006). Risk-Based Pricing and the Enhancement of Mortgage Credit Availability among Underserved and Higher Credit-Risk Populations Journal of Money, Credit and Banking

Deng, Y. & Zheng, D. & Ling, C. (2005). An Early Assessment of Residential Mortgage Performance in China Journal of Real Estate Finance and Economics

Deng, Y. & Pavlov, A. & Yang, L. (2005). Spatial Heterogeneity in Mortgage Terminations by Refinance, Sale, and Default Real Estate Economics

Deng, Y. & Ross, S. & Wachter, S. (2003). Racial Differences in Homeownership: The Effect of Residential Location Regional Science and Urban Economics

Ciochetti, B. & Deng, Y. & Lee, G. & Shilling, J. & Yao, R. (2003). A Proportional Hazards Model of Commercial Mortgage Default with Originator Bias Journal of Real Estate Finance and Economics

Deng, Y. & Gabriel, S. & Nothaft, F. (2003). Duration of Residence in the Rental Housing Markets Journal of Real Estate Finance and Economics

Ciochetti, B. & Deng, Y. & Gao, B. & Yao, R. (2002). The Termination of Lending Relationships through Prepayment and Default in the Commercial Mortgage Markets: A Proportional Hazard Approach with Competing Risks Real Estate Economics

Calhoun , C. & Deng, Y. (2002). A Dynamic Analysis of Adjustable- and Fixed-Rate Mortgage Termination Journal of Real Estate Finance and Economics

Ambrose, B. & Capone, C. & Deng, Y. (2001). Optimal Put Exercise: An Empirical Examination of Conditions for Mortgage Foreclosure Journal of Real Estate Finance and Economics

Deng, Y. & Quigley, J. & Van Order, R. (2000). Mortgage Terminations, Heterogeneity and the Exercise of Mortgage Options Econometrica

Deng, Y. (1997). Mortgage Termination: An Empirical Hazard Model with Stochastic Term Structure Journal of Real Estate Finance and Economics

Deng, Y. & Quigley, J. & Van Order, R. (1996). Mortgage Default and Low Downpayment Loans: The Costs of Public Subsidy Regional Science and Urban Economics

Selected Submitted Journal Articles

Deng, Y. & Inoue, T. & Nishimura, K. & Shimizu, C. (2021). Demographics, Property Prices, and Credit Cycles: Analysis Based on Panel Data from 17 Countries over a Half-Century

Onishi, J. & Deng, Y. & Shimizu, C. (2021). Green Premium in the Tokyo Office Building Market Sustainability

Agarwal, S. & Deng, Y. & He, J. & Wang, Y. (2021). Lenders’ Pricing Strategy: Do Neighborhood Risks Matter?

Deng, Y. & Meng, L. & Zhou, Y. (2020). The effectiveness and costs of non-pharmaceutical interventions on COVID-19 containment: A border discontinuous difference-in-difference approach

Barwick, P. & Deng, Y. & Li, S. & Li, T. & Huang, X. (2020). COVID-19 Pandemic and Unemployment: Evidence from Mobile Phone Data in China Journal of Urban Economics

Deng, Y. & Tang, Y. & Wang, P. & Wu, J. (2020). Spatial Misallocation in Chinese Housing and Land Markets International Economic Review

Deng, Y. & Wei, S. & Wu, J. (2020). Secrets in Asset Purchases: Estimating the Unofficial Income of Officials Management Science

Agarwal, S. & Deng, Y. & Gu, Q. & He, J. & Qian, W. & Ren, Y. (2019). Mortgage Debt, Hand-to-Mouth Households, and Monetary Policy Transmission Review of Finance

Ambrose, B. & Deng, Y. & Li, H. & Wu, J. (2019). Understanding the Risk of China’s Local Government Debts and Its Linkage with Property Markets

Teaching

Undergraduate Courses

Urban and Regional Economics (RES 420), Spring 2020. Download Syllabus
Urban economics is the study of cities, of the economic activities therein, and the determinants of those activities. Development in the urban and real estate sector can often be a reflection or manifestation of broader societal issues; for instance, rising house prices can trigger debates about wealth inequality, and the same sort of technological innovation now reshaping the world of urban development and real estate market. The real estate-related financial capital markets are nurturing entrepreneurship and economic gains in the region and across the globe. Green technology is fostering healthy urban lifestyles and sustainable urban environments.
Urban economics brings together tools developed in the broader fields of economics such as micro- and macro-economics, econometrics and statistics, labor economics, financial economics, public economics, and economic policy studies, etc. By utilizing these tools, we can analyze social issues relating to urban society, such as housing price and affordability, urbanization and migration, demographic shifts and aging, education, labor participation, crime, segregation, congestion and pollution, smart and innovative cities, environmental sustainability and socially responsible development.
In this semester, our goal is to guide the students to take a holistic view of urban and housing economics and to understand the dynamic interactions between real estate market, urban and city space, and other social-economic challenges, and learn how we may tackle these problems.
Students are expected to learn how to apply economic principles and tools to analyze urban phenomena and find solutions to urban problems.

Urban and Regional Economics (RES 420), Spring 2019. Download Syllabus
This course aims to help students to learn stylized facts about cities, their sizes and locations, and their contributions to economic and social development; to understand housing and land price measurement, and the housing tenure choice: buy (or invest) vs. rent; to understand the impact of government regulations on urban development and welfare, why socially responsible and environmentally sustainable urban development is a big challenge in the US and around the world; and learn challenges and opportunities in international housing and real estate markets.

Urban and Regional Economics (RES 420), Spring 2021.
Nature and structure of urban economies; location of economic activity; economic analysis in an urban framework; principles of urban economic development, housing, transportation, poverty and unemployment and municipal finance. Forecasting of economic activity using census and socioeconomic data. Enroll Info: None

Graduate Courses

Readng&Rsch-Real Estate PhD (Independent Study) (RES 999), Fall 2018.

Urban Economics (RES 720), Spring 2021.
Analysis of spatial relationships in the urban economy, including urban land, labor and housing markets; urban transport; city governance and finance; and regional models. Historical and applied focus. Interdisciplinary approach emphasizing economics, geography, and planning. Enroll Info: None

Service

Professional Organizations

American Real Estate and Urban Economics Association (AREUEA), President (2014-2015), 1st VP (2013-2014), 2nd VP (2012-2013), and Board of Directors (2004-06, 2015-18)

Asian Bureau of Finance and Economic Research (ABFER), Senior Fellow & EXCO Member (Since 2013)

World Economic Forum (WEF), Chair (2011-2012), Global Agenda Council for Real Estate (2010-2017)

UN SDSN (Sustainable Development Solutions Network), Co-Chair (2016-2017), Singapore Chapter

Bank for International Settlements (BIS), Representative Office for Asia and the Pacific, Special Advisor (2012-2014)

World Economic Forum (WEF), Vice Chair (2012-2013), Global Agenda Council for Finance and Capital

Editorial and Reviewing Activities

Oxford Research Encyclopedia of Economics and Finance – Since January 2021
Editor

Journal of Housing Economics – January 2016 – December 2019
Special Issue Editor

Journal of Housing Economics – Since January 2009
Editorial Board Member

Real Estate Economics – Since January 2007
Editorial Board Member

Journal of Real Estate Finance and Economics – Since January 1998
Editorial Board Member