Fernando Ferreira

Fernando Ferreira
  • C.F. Koo Professor, Professor of Real Estate, Professor of Business Economics and Public Policy

Contact Information

  • office Address:

    430 Vance Hall
    3733 Spruce Street
    Philadelphia, PA 19104-6301

Research Interests: urban economics, real estate, public economics

Links: CV, Personal Website

Overview

Education

Ph.D. in Economics: University of California, Berkeley, 2004

M.A. in Economics: Federal University of Rio Grande do Sul, Brazil, 1999

B.A. in Economics: State University of Maringa, Brazil, 1996

 Academic Positions Held

C.F. Koo Professor; Professor of Real Estate; Professor of Business Economics and Public Policy, The Wharton School: 2019-present

Associate Professor, The Wharton School: 2011-2019

Assistant Professor, The Wharton School: 2004-2011

Research Associate, National Bureau of Economic Research: 2011-present

Faculty Research Fellow, National Bureau of Economic Research: 2008-2011

Faculty Fellow, Penn Institute for Urban Research: 2009-present

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Research

  • Benjamin Smith, Fernando Ferreira, Jeanna Kenney (Working), Household Mobility, Networks, and Gentrification of Minority Neighborhoods in the US.

    Abstract: We study how recent gentrification shocks impact Black and Hispanic neighborhoods, including where minority households move to after a shock and if the subsequent spatial distribution of households within a labor market area affects segregation. We first report that household moves from a given neighborhood are concentrated to a few destinations. For minority neighborhoods, destinations tend to have similar minority shares but are farther away from downtown. Those mobility patterns are partially explained by neighborhood networks. We then use Bartik-style labor market income shocks to show that gentrification has many effects. In Black neighborhoods, gentrification increases house prices and reduces the share of Black households while increasing the share of White households. For movers from Black neighborhoods, gentrification increases the share of movers going to top 1 and 2 destinations based on neighborhood networks and increases the share of households moving out of the MSA, but does not change the pattern of households moving to neighborhoods with similar Black shares that are farther away from downtown areas. Hispanic neighborhoods have negligible effects from gentrification. Finally, our model reveals that overall labor market area segregation decreases after a gentrification shock because highly Black neighborhoods become less segregated.

  • Fernando Ferreira, Patrick Bayer, Marcus Casey, Robert McMillan (2018), Racial and Ethnic Price Differentials in the Housing Market, Journal of Urban Economics, Vol. 102, pp. 91-105.

  • Fernando Ferreira, Patrick Bayer, Stephen Ross (2018), What Drives Racial and Ethnic Differences in High Cost Mortgages? The Role of High Risk Lenders, The Review of Financial Studies, Vol. 31(1), pp. 175-205.

  • Fernando Ferreira (Under Review), Housing Disease and Public School Finances.

  • Fernando Ferreira, Anthony DeFusco, Joseph Gyourko, Wenjie Ding (Work In Progress), The Role of Contagion in the Last American Housing Cycle.

  • Fernando Ferreira, Patrick Bayer, Stephen Ross (2016), The Vulnerability of Minority Homeowners in the Housing Boom and Bust, American Economic Journal: Economic Policy, 8 (1), pp. 1-27.

    Abstract: This paper examines mortgage outcomes for a large sample of individual home purchases and refinances linked to credit scores in seven major US markets. Among those with similar credit scores and loan attributes, black and Hispanic homeowners had much higher rates of delinquency and default in the downturn. These estimated differences are especially pronounced for loans originated near the peak of the housing boom. These findings suggest that black and Hispanic homeowners drawn into the market near the peak were especially vulnerable to adverse economic shocks and raise concerns about homeownership as a mechanism for reducing racial disparities in wealth.

  • Fernando Ferreira and Joseph Gyourko (Working), A New Look at the U.S. Foreclosure Crisis: Panel Data Evidence of Prime and Subprime Borrowers from 1997 to 2012, (June 1, 2015).

    Abstract: Utilizing new panel micro data on the ownership sequences of all types of borrowers from 1997-2012 leads to a reinterpretation of the U.S. foreclosure crisis as more of a prime, rather than subprime, borrower issue. Moreover, traditional mortgage default factors associated with the economic cycle, such as negative equity, completely account for the foreclosure propensity of prime borrowers relative to all-cash owners, and for the three-quarters of the analogous subprime gap. Housing traits, race, initial income, and speculators did not play a meaningful role, and initial leverage only accounts for a small variation in outcomes of prime and subprime borrowers.

  • Fernando Ferreira and Nathaniel Baum-Snow (2015), Causal Inference in Urban Economics, Handbook of Regional and Urban Economics, vol. 5A, May 2015. Edited by Duranton, Henderson, and Strange..

    Abstract: Recovery of causal relationships in data is an essential part of scholarly inquiry in the social sciences. This chapter discusses strategies that have been successfully used in urban and regional economics for recovering such causal relationships. Essential to any successful empirical inquiry is careful consideration of the sources of variation in the data that identify parameters of interest. Interpretation of such parameters should take into account the potential for their heterogeneity as a function of both observables and unobservables.

  • Fernando Ferreira, Patrick Bayer, Stephen L. Ross (Work In Progress), Race, Ethnicity and High Cost Mortgage Lending.

  • Fernando Ferreira and Joseph Gyourko (2014), Does Gender Matter for Political Leadership? The Case of U.S. Mayors, Journal of Public Economics, Vol. 112, pp. 24-39.

Teaching

All Courses

  • BEPP2300 - Urban Fiscal Policy

    This course will examine the provision of public services for firms and people through cities. Why cities exist, when fiscal policy fails, investments in infrastructure, realities of local governments such as inequality, crime, corruption, high cost of living, congestion, and unfunded pensions and debt, will be covered. We will pay special attention to recent topics, such as partnerships with the private sector, enterprise zones, the role of technology, environmental challenges, and real estate policies that promote housing affordability, such as rent control and inclusionary zoning.

  • BEPP2990 - Independent Study

  • BEPP7730 - Urban Fiscal Policy

    This course will examine the provision of public services for firms and people through cities. Why cities exist, when fiscal policy fails, investments in infrastructure, realities of local governments such as inequality, crime, corruption, high cost of living, congestion, and unfunded pensions and debt, will be covered. We will pay special attention to recent topics, such as partnerships with the private sector, enterprise zones, the role of technology, environmental challenges, and real estate policies that promote housing affordability, such as rent control and inclusionary zoning.

  • BEPP9620 - Applied Economics Sem

    The goal of this course is to help doctoral students develop critical thinking skills through both seminar participation and writing of referee reports. To this end students will attend the Wharton Applied Economics each Wednesday at noon seminar when it meets; prepare two written referee reports on WAE papers per semester, due before the seminar is presented. After attending the seminar and the ensuing discussion of the paper, students will prepare follow-up evaluations of their referee report reports, due one week after the seminar.

  • 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).

  • FNCE2300 - Urban Fiscal Policy

    This course will examine the provision of public services for firms and people through cities. Why cities exist, when fiscal policy fails, investments in infrastructure, realities of local governments such as inequality, crime, corruption, high cost of living, congestion, and unfunded pensions and debt, will be covered. We will pay special attention to recent topics, such as partnerships with the private sector, enterprise zones, the role of technology, environmental challenges, and real estate policies that promote housing affordability, such as rent control and inclusionary zoning.

  • 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.

  • FNCE7300 - Urban Fiscal Policy

    This course will examine the provision of public services for firms and people through cities. Why cities exist, when fiscal policy fails, investments in infrastructure, realities of local governments such as inequality, crime, corruption, high cost of living, congestion, and unfunded pensions and debt, will be covered. We will pay special attention to recent topics, such as partnerships with the private sector, enterprise zones, the role of technology, environmental challenges, and real estate policies that promote housing affordability, such as rent control and inclusionary zoning.

  • INSP4999 - Honors Thesis

    The senior thesis course is a capstone for seniors in the Huntsman Program in International Studies and Business. Students in the Huntsman Program should consult with the Huntsman Program advisors for more information.

  • PPE3999 - Independent Study

    Student arranges with a faculty member to pursue a research project on a suitable topic. For more information about research and setting up independent studies, visit: https://ppe.sas.upenn.edu/study/curriculum/independent-studies

  • 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).

  • REAL2300 - Urban Fiscal Policy

    This course will examine the provision of public services for firms and people through cities. Why cities exist, when fiscal policy fails, investments in infrastructure, realities of local governments such as inequality, crime, corruption, high cost of living, congestion, and unfunded pensions and debt, will be covered. We will pay special attention to recent topics, such as partnerships with the private sector, enterprise zones, the role of technology, environmental challenges, and real estate policies that promote housing affordability, such as rent control and inclusionary zoning.

  • 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.

  • REAL7300 - Urban Fiscal Policy

    This course will examine the provision of public services for firms and people through cities. Why cities exist, when fiscal policy fails, investments in infrastructure, realities of local governments such as inequality, crime, corruption, high cost of living, congestion, and unfunded pensions and debt, will be covered. We will pay special attention to recent topics, such as partnerships with the private sector, enterprise zones, the role of technology, environmental challenges, and real estate policies that promote housing affordability, such as rent control and inclusionary zoning.

  • REAL8990 - Independent Study

    All independent studies must be arranged and approved by a Real Estate Department faculty member.

  • REAL9460 - Adv Topic in Urban Econ

    This course addresses advanced topics in urban and real estate economics. The course will mix theory and empirics and will cover a broad range of topics including the modeling and estimation of agglomeration economies, land use and urban costs, transportation in cities, urban growth, migration between cities etc. The classes will mix formal presentations made by the instructor and student-led discussions of recent academic papers. In addition to presentations, students will be expected to complete a series of assignments including a short original research paper. PhD students will be expected to complete a research paper in addition to the successful completion of the course examination requirements. Prerequisites: The course assumes that students have familiarity with standard first year econometrics and microeconomics.

  • REAL9470 - Adv Real Est & Urb Econ

    This course covers fundamental topics in the broad fields of urban economics and real estate. We will focus on the application of econometric methods and economic modelling to analyze important issues, such as household sorting and valuation of local amenities, racial segregation, and the provision of local public goods.

  • REAL9620 - Applied Economics Sem

    The goal of this course is to help doctoral students develop critical thinking skills through both seminar participation and writing of referee reports. To this end students will attend the Wharton Applied Economics each Wednesday at noon seminar when it meets; prepare two written referee reports on WAE papers per semester, due before the seminar is presented. After attending the seminar and the ensuing discussion of the paper, students will prepare follow-up evaluations of their referee report reports, due one week after the seminar.

  • REAL9950 - Dissertation

    Dissertation

  • REAL9990 - Independent Study

Activity

In the News

Why the Housing Market Is Not in Recession

Housing sales are falling in response to rising interest rates, but the real estate market is not in a recession, according to Wharton’s Fernando Ferreira. He explains why the persistent lack of supply will continue to put pressure on homebuyers.Read More

Knowledge at Wharton - 9/6/2022
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Headshot of Andrew Paciorek. He has short, brown hair and is wearing a blue polo shirt.Faculty Expertise in Housing Economics Attracted This PhD Student to Wharton

Andrew Paciorek began researching volatility in housing prices five years ago, just as the bubble was near its peak. “One thing that we’ve learned over the last few years is that when house prices go up and down at a rapid pace, it has serious implications for the roughly two-thirds of…

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