Terry Real Estate Program—The University of Georgia

Dr. James B. Kau

C. Herman and Mary Virginia Terry Chair of Business Administration

Brooks 298A
Phone: 706.542.3805
jkau@terry.uga.edu

vitae

James B. Kau (Ph.D., University of Washington) is a Professor of Real Estate and holder of a C. Herman and Mary Virginia Terry Chair of Business Administration, has interests in mortgage markets, real estate finance, housing economics and urban economics. A Fellow of the Homer Hoyt Institute, Dr. Kau has served as a consultant to many governmental agencies, including the U.S. Department of Transportation and the Department Housing and Urban Development. He is editor of the Journal of Real Estate Finance and Economics and is the author of numerous articles and five books including the text, Real Estate, published by McGraw Hill.

Selected Publications

A Fixed-Rate Mortgage Valuation Model in Three State Variables (with Brunson and Keenan), The Journal of Fixed Income, 2002, Volume 11, 17-27.
Frictions, Heterogeneity, and Optimality in Mortgage Modeling (with Slawson), The Journal of Real Estate Finance and Economics, 2001, Volume 24, 231-245.
The Growth of Government: Sources and Limits (with Rubin), Public Choice, 2001, Volume 34, 330-346.
Liability Distribution for Mortgage Insurance (with Keenan), Journal of Risk and Insurance, 2001, Volume 68, 457-488.
Patterns of Rational Default (with Keenan), Journal of Regional Science and Urban Economics, 2000, Volume 29, 765-785.
Catastrophic Default and Credit Risk for Lending Institutions (with Keenan), Journal of Financial Services Research," 1999, Volume 15, 2, 87-102.
An Option-Theoretic Model of Catastrophes Applied to Mortgage Insurance (with Keenan), The Journal of Risk and Insurance, 1996, Vol. 63, #4, 639-656.
Pricing a Class of American and European Path Dependent Securities (with Hilliard, Keenan and Muller), Management Science, 1995.
Option Theory and Floating Rate Securities with a Comparison of Adjustable and Fixed Rate Mortgages (with Keenan, Muller, and Epperson), Journal of Business, 66, 1993, 595-618.
Default Probabilities for Mortgages (with Keenan and Kim), Journal of Urban Economics, 1994, 35, 278-296.
A Generalized Valuation Model for Fixed-Rate Residential Mortgages (with Keenan, Muller and Epperson), 1992, Journal of Money, Credit and Banking, Vol. 24, #3, August, 279-299.
The Analysis and Valuation of Adjustable Rate Mortgages (with Keenan, Muller and Epperson), Management Science, Vol. 36, #12, December, 1990, 1417-1431.
An Option-Based Pricing Model of Private Mortgage Insurance (with Keenan, Muller and Epperson), Journal of Risk and Insurance, 60, #2, 1993, 288-299.

Working Papers

Reduced-Form Mortgage Valuation (with D. Keenan and A. Smurov).
The Cost-Mitigating Effect of Call Provisions on Risky Debt (with C. Slawson and L. Peters).
The Relation Between Call Option Value, Interest Rates and Default Risk (with L. Peters).
Development as a Real Option: Combining Theoretical Option Pricing and Empirical Data (with H. Munneke and R. Grovenstein).
Zoning Change as a Real Option (with H. Munneke and R. Grovenstein).

Editor

Journal of Real Estate Finance and Economics

Classes

REAL 9830: Real Estate Finance
REAL 9910: Seminar in Real Estate Analysis and Finance
REAL 9920: Seminar in Real Estate Markets and Investments

Areas of Research:

Option Theory and Mortgage Valuation
Pricing Mortgage Insurance
Mortgage Valuation with Default and Prepayment