Maisy Wong
- James T. Riady Associate Professor of Real Estate
Contact Information
- Primary Email:
maisy@wharton.upenn.edu - Office Phone:
(215) 898-9687
- office Address:
425 Dinan Hall
3733 Spruce Street
Philadelphia, PA 19104-6301
Research Interests: urban economics, real estate finance, development economics
Links: CV, Personal Website
Overview
Education
Ph.D. in Economics: Massachusetts Institute of Technology, 2008; B.A. in Economics: University of California, Berkeley, 2003
Academic Positions Held
Associate Professor, The Wharton School: 2017-Present
Assistant Director, Grayken Program in International Real Estate at the Zell/Lurie Real Estate Center of the Wharton School: 2017- 2021
Assistant Professor, The Wharton School: 2008-2017
Other Positions
Consultant, World Bank (Jakarta Office), 2003-2011
Research
Mariaflavia Harari and Maisy Wong (Forthcoming), “Slum Upgrading and Long-run Urban Development: Evidence from Indonesia” (Accepted, Review of Economic Studies).
Abstract: Developing countries face massive urbanization and slum upgrading is a popular policy to improve shelter for many. Yet, preserving slums at the expense of formal developments can raise concerns of misallocation of land. We estimate causal, long-term impacts of the 1969-1984 KIP program, which provided basic upgrades to 5 million residents covering 25% of land in Jakarta, Indonesia. We assemble high-resolution data on program boundaries and 2015 outcomes and address program selection bias through localized comparisons. On average, KIP areas today have lower land values, shorter buildings, and are more informal, per a photographs-based slum index. The negative effects are concentrated within 5km of the CBD. We develop a spatial equilibrium model to characterize the welfare implications of KIP. Counterfactuals suggest that 78% of the welfare effects stem from removing KIP in the center and highlight how to mitigate losses to displaced residents. JEL Classifications: R14, R31, R4.
Mariaflavia Harari and Maisy Wong (Under Revision), Colonial Legacy and Land Market Formality (R&R, Journal of Urban Economics).
Abstract: We study the role of Dutch colonial institutions on urban development for the megacity of Jakarta, Indonesia. Using historical maps of Dutch settlements and a rich granular database, we implement a boundary discontinuity design comparing locations within 200 meters of Dutch boundaries. We find that historical Dutch areas today have significantly lower parcel density, are more likely to have formally registered parcels, and have more regular parcel layout, pointing to the importance of planning and mapping. Dutch settlements are also more likely to appear formal, as per a photographic index that ranks the appearance of neighborhoods. More broadly, Dutch areas are 11 percentage points more likely to have tall buildings (with more than 3 floors) and have 17 log points higher assessed land values. We consider channels such as natural advantage, direct Dutch investments, and land market institutions.
Samuel Bazzi, Arya Gaduh, Alexander Rothenberg, Maisy Wong, Unity in Diversity? How Intergroup Contact Can Foster Nation Building. Revision requested at the American Economic Review. 2018.
Maisy Wong, Inter-generational Mobility in Slums: Evidence from Field Surveys in Indonesia. Conditional Acceptance at the Asian Development Review. 2017.
Maisy Wong (2016), CMBS and Conflicts of Interest: Evidence from Ownership Changes of Servicers, Journal of Finance.
Abstract: Self-dealing is potentially important but difficult to measure. I study special servicers in commercial mortgage-backed securities(CMBS),who sell distressed assets on behalf of bondholders. Around 2010, ownership changes for four major servicers raised tunneling concerns that they may direct benefits to new owners’ affiliates (buyers and service providers). Loans liquidated after ownership changes have greater loss rates than before (8 percentage point, $2.3 billion in losses), relative to other (placebo) servicers. Together with a case study that tracks self-dealing purchases, the findings point to potential steering conflicts that could incentivize tunneling through fees to service providers
Maisy Wong, Parag A. Pathak, Panle Jia Barwick (2016), Conflicts of Interest and Steering in Residential Brokerage, American Economic Journal: Applied Economics.
Abstract: This paper documents uniformity in real estate commission rates offered to buyers’ agents using 653,475 residential listings in eastern Massachusetts from 1998-2011. Properties listed with lower commission rates experience less favorable transaction outcomes: they are 5% less likely to sell and take 12% longer to sell. These adverse outcomes reflect decreased willingness of buyers’ agents to intermediate low commission properties (steering), rather than heterogeneous seller preferences or reduced effort of listing agents. Offices with large market shares purchase a disproportionately small fraction of low commission properties. The negative outcomes for low commissions provide empirical support for regulatory concerns over steering.
Samuel Bazzi, Arya Gaduh, Alexander Rothenberg, Maisy Wong (2016), Skill Transferability, Migration, and Development: Evidence from Population Resettlement in Indonesia, .
Abstract: We use a natural experiment in Indonesia to provide causal evidence on the role of location-specific human capital and skill transferability in shaping the spatial distribution of productivity. From 1979-1988, the Transmigration Program relocated two million migrants from rural Java and Bali to new rural settlements in the Outer Islands. Villages assigned migrants from regions with more similar agroclimatic endowments exhibit higher rice productivity and nighttime light intensity one to two decades later. We find some evidence of migrants' adaptation to agroclimatic change. Overall, our results suggest that regional productivity differences may overstate the potential gains from migration.
Maisy Wong (Working), A Tractable Framework to Relate Marginal Willingness-to-Pay in Hedonic and Discrete Choice Models.
Abstract: The two primary approaches to estimate marginal willingness-to-pay (MWTP) are hedonic (Rosen:1974) and discrete choice models (McFadden:1974). This paper provides a tractable framework to investigate the relationship between MWTP in these models. By deriving the hedonic price gradient implicitly from the share function in the discrete choice model, I present an analytical mapping between the hedonic gradient (hence, the hedonic MWTP) and choice probabilities in the discrete choice model. Intuitively, the hedonic MWTP depends on weighted averages of marginal utilities where higher weights are assigned to individuals whose choice probabilities indicate more uncertain choices (marginal individuals). As this choice becomes more certain, the weights start to decrease. Since the hedonic method relies on tangencies between indifference curves and the hedonic price function to identify MWTP, inframarginal individuals (whose bid functions are not tangent to the hedonic price function) have low weights (they have choice probabilities that are close to 0 or 1 and low choice variances). This novel analytical mapping between the hedonic gradient and the share function can be used to identify conditions when MWTP in the two models are similar.
Karna Basu and Maisy Wong (2015), Evaluating Seasonal Food Storage and Credit Programs in East Indonesia, Journal of Development Economics, 115.
Maisy Wong (2014), Estimating the Distortionary Effects of Ethnic Quotas in Singapore Using Housing Transactions, Journal of Public Economics, 115 (), pp. 131-145.
Teaching
Current Courses (Fall 2024)
REAL2050 - Global Real Estate
This is an introductory course to global real estate markets, with a focus on income-producing real estate assets. Globally, estimates suggest the value of investable real estate assets in the world exceeds $60 trillion. We will discuss the basics of valuation and risk management, emphasizing concepts that are salient in the global context, including political risk, currency risk, property rights and culture. The course will cover markets outside the United States, except for one special topic on international investors in the United States. We will focus more on the qualitative aspects of real estate investment analysis and less on quantitative aspects. As firms expand their ventures across borders, there is a growing emphasis on the ability to assess and manage risk in a global business environment. Many of these decisions have implications on real estate assets. In this class, we will discuss the real estate business decisions of global firms, such as Blackstone, Hilton, AirBNB, WeWork, Prologis, Walmart and Amazon. This is a full semester course, open to undergraduates and MBA's. Lecture with discussion required.
REAL2050403 ( Syllabus )
REAL2050404 ( Syllabus )
REAL7050 - Global Real Estate
This is an introductory course to global real estate markets, with a focus on income-producing real estate assets. Globally, estimates suggest the value of investable real estate assets in the world exceeds $60 trillion. We will discuss the basics of valuation and risk management, emphasizing concepts that are salient in the global context, including political risk, currency risk, property rights, and culture. The course will cover markets outside the United States, except for one special topic on international investors in the United States. We will focus more on the qualitative aspects of real estate investment analysis and less on the quantitative aspects. As firms expand their ventures across borders, there is a growing emphasis on the ability to assess and manage risk in a global business environment. Many of these decisions have implications on real estate assets. In this class, we will discuss the real estate business decisions of global firms, such as Blackstone, Hilton, AirBNB, WeWork, Prologis, Walmart and Amazon. This is a full semester course, open to undergraduates and MBA's. Lecture with discussion required.
REAL7050403 ( Syllabus )
REAL7050404 ( Syllabus )
All Courses
BEPP2990 - Independent Study
FNCE2090 - Real Estate Investments
This course provides an introduction to real estate with a focus on investment and financing issues. Project evaluation, financing strategies, investment decision making and real estate capital markets are covered. No prior knowledge of the industry is required, but students are expected to rapidly acquire a working knowledge of real estate markets. Classes are conducted in a standard lecture format with discussion required. The course contains cases that help students evaluate the impact of more complex financing and capital markets tools used in real estate. There are case studies and two midterms, (depending on instructor).
FNCE7210 - Real Estate Investments
This course provides an introduction to real estate with a focus on investment and financing issues. Project evaluation, financing strategies, investment decision making and capital markets are covered. No prior knowledge of the industry is required, but students are expected to rapidly acquire a working knowledge of real estate markets. Classes are conducted in a standard lecture format with discussion required. The course contains cases that help students evaluate the impact of more complex financing and capital markets tools used in real estate. Lecture with discussion required.
REAL2050 - Global Real Estate
This is an introductory course to global real estate markets, with a focus on income-producing real estate assets. Globally, estimates suggest the value of investable real estate assets in the world exceeds $60 trillion. We will discuss the basics of valuation and risk management, emphasizing concepts that are salient in the global context, including political risk, currency risk, property rights and culture. The course will cover markets outside the United States, except for one special topic on international investors in the United States. We will focus more on the qualitative aspects of real estate investment analysis and less on quantitative aspects. As firms expand their ventures across borders, there is a growing emphasis on the ability to assess and manage risk in a global business environment. Many of these decisions have implications on real estate assets. In this class, we will discuss the real estate business decisions of global firms, such as Blackstone, Hilton, AirBNB, WeWork, Prologis, Walmart and Amazon. This is a full semester course, open to undergraduates and MBA's. Lecture with discussion required.
REAL2090 - Real Estate Investments
This course provides an introduction to real estate with a focus on investment and financing issues. Project evaluation, financing strategies, investment decision making and real estate capital markets are covered. No prior knowledge of the industry is required, but students are expected to rapidly acquire a working knowledge of real estate markets. Classes are conducted in a standard lecture format with discussion required. The course contains cases that help students evaluate the impact of more complex financing and capital markets tools used in real estate. There are case studies and two midterms, (depending on instructor).
REAL3990 - Independent Study
All independent studies must be arranged and approved by a Real Estate department faculty member.
REAL7050 - Global Real Estate
This is an introductory course to global real estate markets, with a focus on income-producing real estate assets. Globally, estimates suggest the value of investable real estate assets in the world exceeds $60 trillion. We will discuss the basics of valuation and risk management, emphasizing concepts that are salient in the global context, including political risk, currency risk, property rights, and culture. The course will cover markets outside the United States, except for one special topic on international investors in the United States. We will focus more on the qualitative aspects of real estate investment analysis and less on the quantitative aspects. As firms expand their ventures across borders, there is a growing emphasis on the ability to assess and manage risk in a global business environment. Many of these decisions have implications on real estate assets. In this class, we will discuss the real estate business decisions of global firms, such as Blackstone, Hilton, AirBNB, WeWork, Prologis, Walmart and Amazon. This is a full semester course, open to undergraduates and MBA's. Lecture with discussion required.
REAL7210 - Real Estate Investments
This course provides an introduction to real estate with a focus on investment and financing issues. Project evaluation, financing strategies, investment decision making and capital markets are covered. No prior knowledge of the industry is required, but students are expected to rapidly acquire a working knowledge of real estate markets. Classes are conducted in a standard lecture format with discussion required. The course contains cases that help students evaluate the impact of more complex financing and capital markets tools used in real estate. Lecture with discussion required.
REAL8990 - Independent Study
All independent studies must be arranged and approved by a Real Estate Department faculty member.
REAL9950 - Dissertation
Dissertation
Awards and Honors
- Excellence in Teaching Award for the Undergraduate Division, 2017-2018
- Wharton Teaching Excellence Reward Recipient, 2018
In the News
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Knowledge at Wharton - 4/23/2013