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James B. Kau

C.Herman and Mary Virginia Terry Distinguished Professor of Business Administration, Professor Emeritus
  • PhD, Economics, University of Washington, 1971
  • MA, Economics, University of Washington, 1969
  • BA, Mathematics, University of Washington, 1967
Prior professional positions:
  • American Heritage Foundation, Adjunct Scholar, 1984 to 2014
  • University of Georgia, C. Herman & Mary Virginia Terry Distinguished Chair of Business Administration, 1988 to 2010
  • UCLA, Visiting Professor, 1988 to 1989
  • University of Georgia, Professor of Real Estate, 1980 to 1988
  • Federal Home Loan Bank of San Francisco, Visiting Scholar, 1985 to 1986
  • Federal Home Loan Mortgage Corporation, Visiting Scholar, 1984 to 1985
  • University of California-Berkeley, Visiting Professor of Finance and Real Estate, 1984 to 1985
  • University of Illinois, Visiting Associate Professor of Finance, 1976 to 1977
Awards, Honors and Recognitions:
  • John M. Quigley Medal for Advancing Real Estate and Urban Economics, 2018 
  • The Pioneer Award, American Real Estate Society, 2014
  • George Bloom Service Award, American Real Estate and Urban Economic Association, 2013
  • The Graaskamp Award, American Real Estate Society, 2010
  • Faculty Research Award, University of Georgia, Terry College of Business, 1978
  • A Fellow, Homer Hoyt Institute, 1978
  • University of Georgia, Terry College of Business, Ph.D Director, 1997 – 2010, University
  • University of Georgia, Terry College of Business, Ph.D Coordinator, Department of Insurance, Legal Studies and Real Estate, 1984 – 2010, University
  • University of Georgia, University Graduate Council, 1988 – 2010, University
  • University of Georgia, Chairperson, Graduate Programs Committee, 1994 – 2010, University
  • University of Georgia, Terry College of Business, Computer User's Advisory Committee, 1980 – 2010, University
Research Interests and Areas of Expertise:

Areas of Expertise

  • Option pricing
  • Mortgage valuation
  • Public Choice
  • Regional Science
  • Urban Economics

Research Interests


  • Real Estate Finance and Investment
  • Urban Economics
  • Housing Economics
  • Real Estate Economics
  • Regional Science
  • Public Choice
Selected Publications:

Journal Articles

  • Kau, J.B and C.F. Lee. 1976. Capital-Land Substitution and Urban Land Use. Journal Of Regional Science, 16(1):83-92. 
  • Kau, J.B. and C.F. Lee. 1976. The Functional Form in Estimating the Density Gradient; An Empirical Investigation. The Journal Of The American Statistical Association, 71(354):326-327. 
  • Kau, J.B. and C.F. Sirmans. 1977. The Influence of Information Cost and Uncertainty on Migration. Journal Of Regional Science, 17(1):89-96. 
  • Kau, J.B. and P. Rubin. 1978. Voting on Minimum Wages: A Time Series Analysis. Journal Of Political Economy, 86(2):337-342. 
  • Kau, J.B. and C.F. Sirmans. 1979. Urban Land Value Functions and the Price Elasticity of Demand for Housing. The Journal Of Urban Economics, 6(4):112-121. 
  • Kau, J.B., C.F. Lee and C.F. Sirmans. 1980. A Variable-Elasticity-of-Substitution Production Function and Urban Land Use: A Theoretical and Empirical Investigation. Developments In Urban And Regional Analysis. 
  • Kau, J.B. and C.F. Sirmans. 1979. A Recursive Model of the Spatial Allocation of Migrants. Journal Of Regional Science, 19(FEB):47-56. 
  • Johnson, L. and J.B. Kau. 1983. Regional Science Programs: A Ranking Based on Publication Performance. Journal Of Regional Science, 23(2):177-186. 
  • Kau, J.B., C.F. Lee and C.F. Sirmans. 1979. The Elasticity of Substitution in Urban Housing Production: A VES Approach. Journal Of Urban Economics, 6:47-56. 
  • Kau, J.B. and P. Rubin. 1979. Self-Interest, Ideology and Voting in Congress. Journal Of Law And Economics, 52(2):365-384. 
  • Kau, J.B. and C.F. Sirmans. 1981. The Demand for Urban Residential Land. Journal Of Regional Science, 21(4):519-528. 
  • Johnson, S.R. and J.B. Kau. 1980. Urban Spatial Structure: An Analysis with a Varying Coefficient Model. Journal Of Urban Economics, 7(2):141-154. 
  • Kau, J.B., D. Keenan and T. Kim. 1993. Transaction Costs, Suboptimal Termination and Default Probabilities. Real Estate Economics, 23:247-263. 
  • Kau, J.B., D. Keenan and W. Muller. 1993. An Option-Based Pricing Model of Private Mortgage Insurance. Journal Of Risk And Insurance,60(2):288-299. 
  • Kau, J.B., D. Keenan and W. Muller. 1990. The Analysis and Valuation of Adjustable Rate Mortgages. Management Science, 36(12):1417-1431. 
  • Kau, J.B., D. Keenan and W. Muller. 1992. A Generalized Valuation Model for Fixed-Rate Residential Mortgages. Journal Of Money, Credit And Banking, 24(3):279-299. 
  • Kau, J.B., D. Keenan, W. Muller and J. Epperson. 1995. The Valuation at Origination of Fixed Rate Mortgages with Default and Prepayment.The Journal Of Real Estate Finance And Economics , 11:5-36. 
  • Kau, J.B. and T. Springer. 1992. The Prepayment of Fixed-Rate Mortgages Underlying Mortgage-Backed Securities: A Switching Regimes Analysis. Journal Of Housing Economics, 2:257-275. 
  • Kau, J.B. and T. Kim. 1994. Waiting to Default: The Value of Delay.Real Estate Economics, 227:195-207. 
  • Kau, J.B., Keenan D. and T. Kim. 1994. Default Probabilities for Mortgages. Journal Of Urban Economics, 35:278-296. 
  • Kau, J.B., D. Keenan, W. Muller and J. Epperson. 1993. Option Theory and Floating Rate Securities with a Comparison of Adjustable and Fixed Rate Mortgages. The Journal Of Business, 66:595-618. 
  • Kau, J.B. and D. Keenan. 1995. An Overview of the Option-Theoretic Pricing of Mortgages. The Journal Of Housing Research, 6(2). 
  • Hilliard, J., J.B. Kau, D. Keenan and W. Muller. 1995. Pricing a Class of American and European Path Dependent Securities. Management Science:282-305. 
  • Chen, R., Kau, J.B. and C.F. Lee. 364-377. Structural Shifts in Urban Population Density Gradients: An Empirical Investigation. Journal Of Urban Economics, 13(3):1983. 
  • Kau, J.B. and C.F. Sirmans. 1984. Changes in Land Values: 1836-1970. Journal Of Urban Economics, 15(1):18-25. 
  • Kau, J.B. and C.F. Sirmans. 1983. Technological Changes and Economic Growth in Housing. Journal Of Urban Economics,13(3):283-295. 
  • Kau, J.B. and P. Rubin. 1981. The Size of Government. Public Choice, 37:261-274. 
  • Kau, J.B., D. Keenan and P. Rubin. 1982. A General Equilibrium Model of Congressional Voting. Quarterly Journal Of Economics,97(2):261-274. 
  • Kau, J.B. and D. Keenan. 1983. Inflation, Taxes and Housing: A Theoretical Analysis. Journal Of Public Economics, 21:93-104. 
  • Hunt, J. and J.B. Kau. 1985. Migration and Wage Growth: A Human Capital Framework. Southern Economic Journal, April. 
  • Kau, J.B. and D. Keenan. 1981. On the Theory of Interest Rates, Consumer Durables and the Demand for Housing. Journal Of Urban Economics, 10(3):320-331. 
  • Kau, J.B. and D. Keenan. 1980. The Theory of Interest Rates and Housing. Journal Of Financial And Quantitative Analysis, XV(4):833-847. 
  • Kau, J.B. and P. Rubin. 1984. Economic and Ideological Factors in Congressional Voting: The 1980 Election. Public Choice, 44:385-388. 
  • Kau, J.B., J. Epperson, D. Keenan and W. Muller. 1985. Pricing Default Risk in Mortgages. Real Estate Economics, 13(3):262-272. 
  • Kau, J.B., D. Keenan, W. Muller and J. Epperson. 1985. Rational Pricing of Adjustable Rate Mortgages. Real Estate Economics (Areuea), 13(2):117-128. 
  • Kau, J.B. 1987. The Valuation and Securitization of Commercial and Multifamily Mortgages. Journal Of Banking And Finance, 11:525-546. 
  • Kau, J.B. and C.F. Lee. 1987. Dividend Policy and Payment Behavior of REITs: Theory and Evidence. The Quarterly Review Of Economics And Business, 27(2):6-21. 
  • Kau, J.B. 1987. The Political Economy of Urban Land Use. Law And Property Rights. 
  • Allen, T. and J.B. Kau. 1991. Contributing Authors and Institutions to the Journal of Urban Economics: 1974-1989. Journal Of Urban Economics, 30:373-384. 
  • Kau, J.B. and T. Springer. 1993. An Analysis of Financial and Nonfinancial Prepayment of Debt Securities with a Varying Coefficient Model. The Journal Of Real Estate Research, 8(1):69-86. 
  • Kau, J.B. and P. Rubin. 1993. Ideology, Voting and Shirking. Public Choice, 37:151-172. 
  • Kau, J.B. and T. Kim. 1993. The Timing of Prepayment: A Theoretical Analysis. The Journal Of Real Estate Finance And Economics ,7(3):221-228. 
  • Kau, J.B. and T. Springer. 1992. The Prepayment Option on Mortgage Securities: A Random Coefficient Approach. Review Of Quantitative Finance And Accounting, 2(1):33-45. 
  • Kau, J.B., D. Keenan and W. Muller. 1992. The Secondary Mortgage Market. The New Palgrave Dictionary Of Money And Finance. 
  • Kau, J.B., D. Keenan and W. Muller. 1991. Designing Commercial Mortgages and Their Mortgaged Backed Securities. Asset Securitization: Theory And Practice In Europe. 
  • Chin, L., J.B. Kau, D. Keenan and W. Muller. 1993. A Note on the Resulting Bias of Imposing Expedient Conditions on Mortgage Valuation. Journal Of Housing Economics, 3:77-88. 
  • Kau, J.B., D. Keenan and T. Kim. 1995. Self-Interest, Ideology and Logrolling in Congressional Voting. Journal Of Law And Economics,XXII(2):365-384. 
  • Buttimer, R., J.B. Kau and C. Slawson. 1997. Option Theory and Price Indices. Journal Of Housing Economics, 6:16-30. 
  • Kau, J.B. and D. Keenan. 1996. An Option-Theoretic Model of Catastrophes Applied to Mortgage Insurance. The Journal Of Risk And Insurance, 63(4):639-656. 
  • Hilliard, J., J.B. Kau and C. Slawson. 1999. Valuing Prepayment and Default in a Fixed-Rate Mortgage: A Bivariate Binomial Options Pricing Technique. Real Estate Economics, 26(3):431-468. 
  • Kau, J.B., and D. Keenan. 1999. Catastrophic Default and Credit Risk for Lending Institutions. Journal Of Financial Services Research,15(2):87-102. 
  • Kau, J.B. and D. Keenan. 2000. Patterns of Rational Default. Journal Of Regional Science And Urban Economics, 29:765-785. 
  • Kau, J.B. and D. Keenan. 2001. Liability Distribution for Mortgage Insurance. The Journal Of Risk And Insurance, 68:457-488. 
  • Kau, J.B. and P. Rubin. 2002. The Growth of Government: Sources and Limits. Public Choice, 34:330-346. 
  • Brunson, A., J.B. Kau and D. Keenan. 2002. A Fixed-Rate Mortgage Valuation Model in Three State Variables. The Journal Of Fixed Income, 11:17-27. 
  • Kau, J.B., J. Linck and P. Rubin. 2009. Do Managers Listen to the Market. Journal Of Corporate Finance, 14(4). 
  • Grovenstein, R., J.B. Kau and H. Munneke. 2011. Development Value: A Real Options Approach Using Empirical Data. The Journal Of Real Estate Finance And Economics , 43(3):321-335. 
  • Kau, J.B., D. Keenan, C. Lyubimov and C. Slawson. 2012.Asymmetric Information in the Subprime Mortgage Market. Journal Of Real Estate Finance And Economics , 44(1,2). 
  • Kau, J.B., D. Keenan, C. Lyubimov and C. Slawson. 2011. Subprime Mortgages and Default. Journal Of Urban Economics, 70(2,3):75-87. 
  • Kau, J.B., D. Keenan and H. Munneke. 2012. Racial Discrimination and Mortgage Lending. The Journal Of Real Estate Finance And Economics , 45(2):289-304. 
  • Eriksen, M., J.B. Kau and D. Keenan. 2013. The Impact of Second Loans on Subprime Mortgage Defaults. Real Estate Economics (Areuea), 41(4):858-886. 
  • Kau, J.B., D. Keenan and C. Lyubimov. 2014. First Mortgages, Second Mortgages, and Their Default. The Journal Of Real Estate Finance And Economics , 48(4):Forthcoming. 
  • Buschbom, S., J.B. Kau and D. Keenan. 2014. Prepayment and Default Risk. Oxford University Press, Chapter 8:137-156.


  • Kau, J.B., C.F. Lee and C.F. Sirmans. 1986. Urban Econometrics: Model Developments and Empirical Results. Research In Urban Economics, 6(JAI Press). 
  • Kau, J.B. and C.F. Sirmans. 1985. Taxation and Real Estate Investment. Prentice-Hall, Inc., Englewood Cliffs, New Jersey. 
  • Kau, J.B. and C.F. Sirmans. 1985. Real Estate. Mcgraw-Hill, Inc., New York. 
  • Kau, J.B. 1983. The Impact of the New Tax Depreciation Laws on Real Estate Small Business. Research Monograph, Center For Business And Economic Studies. 
  • Kau, J.B. and P. Rubin. 1981. Congressmen, Constituents and Contributions: An Analysis of Determinants of Roll Call Voting in the House of Representatives. Martinas Nijhoff, Publishers, Boston. 
  • Kau, J.B. and C.F. Sirmans. 1980. Cases in Tax Planning for Real Estate Investing. National Institute For Financial Planning, Salt Lake City, Utah.


Editorial appointments:
  • Editor, Journal of Real Estate Finance and Economics, 1988 - 2018
  • Editorial Board, Journal of Housing Economics, 1997 - 2006
  • Editor, The Journal of Real Estate Literature, 1992 - 2000
  • Editorial Board, The Journal of Real Estate Research, 1992 - 2000
  • Editorial Board, Journal of Urban Economics, 1980 - 1996
  • Editorial Board, Journal of Regional Science, 1984 - 1988
  • Editor, Real Estate Economics (AREUEA), 1983 - 1987