James B. Kau
Real Estate Program

C. Herman and Mary Virginia Terry Distinguished Chair in Business Administration, Emeritus

A421 Moore-Rooker Hall
610 S. Lumpkin St.
Athens, GA, 30602
Phone Numbers
Email Address
Google Scholar Citations


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


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

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. 1976Capital-Land Substitution and Urban Land UseJournal Of Regional Science16(1):83-92
  • Kau, J.B. and C.F. Lee. 1976The Functional Form in Estimating the Density Gradient; An Empirical InvestigationThe Journal Of The American Statistical Association71(354):326-327
  • Kau, J.B. and C.F. Sirmans. 1977The Influence of Information Cost and Uncertainty on MigrationJournal Of Regional Science17(1):89-96
  • Kau, J.B. and P. Rubin. 1978Voting on Minimum Wages: A Time Series AnalysisJournal Of Political Economy86(2):337-342
  • Kau, J.B. and C.F. Sirmans. 1979Urban Land Value Functions and the Price Elasticity of Demand for HousingThe Journal Of Urban Economics6(4):112-121
  • Kau, J.B., C.F. Lee and C.F. Sirmans. 1980A Variable-Elasticity-of-Substitution Production Function and Urban Land Use: A Theoretical and Empirical InvestigationDevelopments In Urban And Regional Analysis
  • Kau, J.B. and C.F. Sirmans. 1979A Recursive Model of the Spatial Allocation of MigrantsJournal Of Regional Science19(FEB):47-56
  • Johnson, L. and J.B. Kau. 1983Regional Science Programs: A Ranking Based on Publication PerformanceJournal Of Regional Science23(2):177-186
  • Kau, J.B., C.F. Lee and C.F. Sirmans. 1979The Elasticity of Substitution in Urban Housing Production: A VES ApproachJournal Of Urban Economics6:47-56
  • Kau, J.B. and P. Rubin. 1979Self-Interest, Ideology and Voting in CongressJournal Of Law And Economics52(2):365-384
  • Kau, J.B. and C.F. Sirmans. 1981The Demand for Urban Residential LandJournal Of Regional Science21(4):519-528
  • Johnson, S.R. and J.B. Kau. 1980Urban Spatial Structure: An Analysis with a Varying Coefficient ModelJournal Of Urban Economics7(2):141-154
  • Kau, J.B., D. Keenan and T. Kim. 1993Transaction Costs, Suboptimal Termination and Default ProbabilitiesReal Estate Economics23:247-263
  • Kau, J.B., D. Keenan and W. Muller. 1993An Option-Based Pricing Model of Private Mortgage InsuranceJournal Of Risk And Insurance,60(2):288-299
  • Kau, J.B., D. Keenan and W. Muller. 1990The Analysis and Valuation of Adjustable Rate MortgagesManagement Science36(12):1417-1431
  • Kau, J.B., D. Keenan and W. Muller. 1992A Generalized Valuation Model for Fixed-Rate Residential MortgagesJournal Of Money, Credit And Banking24(3):279-299
  • Kau, J.B., D. Keenan, W. Muller and J. Epperson. 1995The 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. 1992The Prepayment of Fixed-Rate Mortgages Underlying Mortgage-Backed Securities: A Switching Regimes AnalysisJournal Of Housing Economics2:257-275
  • Kau, J.B. and T. Kim. 1994Waiting to Default: The Value of Delay.Real Estate Economics227:195-207
  • Kau, J.B., Keenan D. and T. Kim. 1994Default Probabilities for MortgagesJournal Of Urban Economics35:278-296
  • Kau, J.B., D. Keenan, W. Muller and J. Epperson. 1993Option Theory and Floating Rate Securities with a Comparison of Adjustable and Fixed Rate MortgagesThe Journal Of Business66:595-618
  • Kau, J.B. and D. Keenan. 1995An Overview of the Option-Theoretic Pricing of MortgagesThe Journal Of Housing Research6(2)
  • Hilliard, J., J.B. Kau, D. Keenan and W. Muller. 1995Pricing a Class of American and European Path Dependent SecuritiesManagement Science:282-305
  • Chen, R., Kau, J.B. and C.F. Lee. 364-377Structural Shifts in Urban Population Density Gradients: An Empirical InvestigationJournal Of Urban Economics13(3):1983
  • Kau, J.B. and C.F. Sirmans. 1984Changes in Land Values: 1836-1970Journal Of Urban Economics15(1):18-25
  • Kau, J.B. and C.F. Sirmans. 1983Technological Changes and Economic Growth in HousingJournal Of Urban Economics,13(3):283-295
  • Kau, J.B. and P. Rubin. 1981The Size of GovernmentPublic Choice37:261-274
  • Kau, J.B., D. Keenan and P. Rubin. 1982A General Equilibrium Model of Congressional VotingQuarterly Journal Of Economics,97(2):261-274
  • Kau, J.B. and D. Keenan. 1983Inflation, Taxes and Housing: A Theoretical AnalysisJournal Of Public Economics21:93-104
  • Hunt, J. and J.B. Kau. 1985Migration and Wage Growth: A Human Capital FrameworkSouthern Economic JournalApril
  • Kau, J.B. and D. Keenan. 1981On the Theory of Interest Rates, Consumer Durables and the Demand for HousingJournal Of Urban Economics10(3):320-331
  • Kau, J.B. and D. Keenan. 1980The Theory of Interest Rates and HousingJournal Of Financial And Quantitative AnalysisXV(4):833-847
  • Kau, J.B. and P. Rubin. 1984Economic and Ideological Factors in Congressional Voting: The 1980 ElectionPublic Choice44:385-388
  • Kau, J.B., J. Epperson, D. Keenan and W. Muller. 1985Pricing Default Risk in MortgagesReal Estate Economics13(3):262-272
  • Kau, J.B., D. Keenan, W. Muller and J. Epperson. 1985Rational Pricing of Adjustable Rate MortgagesReal Estate Economics (Areuea)13(2):117-128
  • Kau, J.B. 1987The Valuation and Securitization of Commercial and Multifamily MortgagesJournal Of Banking And Finance11:525-546
  • Kau, J.B. and C.F. Lee. 1987Dividend Policy and Payment Behavior of REITs: Theory and EvidenceThe Quarterly Review Of Economics And Business27(2):6-21
  • Kau, J.B. 1987The Political Economy of Urban Land UseLaw And Property Rights
  • Allen, T. and J.B. Kau. 1991Contributing Authors and Institutions to the Journal of Urban Economics: 1974-1989Journal Of Urban Economics30:373-384
  • Kau, J.B. and T. Springer. 1993An Analysis of Financial and Nonfinancial Prepayment of Debt Securities with a Varying Coefficient ModelThe Journal Of Real Estate Research8(1):69-86
  • Kau, J.B. and P. Rubin. 1993Ideology, Voting and ShirkingPublic Choice37:151-172
  • Kau, J.B. and T. Kim. 1993The Timing of Prepayment: A Theoretical AnalysisThe Journal Of Real Estate Finance And Economics ,7(3):221-228
  • Kau, J.B. and T. Springer. 1992The Prepayment Option on Mortgage Securities: A Random Coefficient ApproachReview Of Quantitative Finance And Accounting2(1):33-45
  • Kau, J.B., D. Keenan and W. Muller. 1992The Secondary Mortgage MarketThe New Palgrave Dictionary Of Money And Finance
  • Kau, J.B., D. Keenan and W. Muller. 1991Designing Commercial Mortgages and Their Mortgaged Backed SecuritiesAsset Securitization: Theory And Practice In Europe
  • Chin, L., J.B. Kau, D. Keenan and W. Muller. 1993A Note on the Resulting Bias of Imposing Expedient Conditions on Mortgage ValuationJournal Of Housing Economics3:77-88
  • Kau, J.B., D. Keenan and T. Kim. 1995Self-Interest, Ideology and Logrolling in Congressional VotingJournal Of Law And Economics,XXII(2):365-384
  • Buttimer, R., J.B. Kau and C. Slawson. 1997Option Theory and Price IndicesJournal Of Housing Economics6:16-30
  • Kau, J.B. and D. Keenan. 1996An Option-Theoretic Model of Catastrophes Applied to Mortgage InsuranceThe Journal Of Risk And Insurance63(4):639-656
  • Hilliard, J., J.B. Kau and C. Slawson. 1999Valuing Prepayment and Default in a Fixed-Rate Mortgage: A Bivariate Binomial Options Pricing TechniqueReal Estate Economics26(3):431-468
  • Kau, J.B., and D. Keenan. 1999Catastrophic Default and Credit Risk for Lending InstitutionsJournal Of Financial Services Research,15(2):87-102
  • Kau, J.B. and D. Keenan. 2000Patterns of Rational DefaultJournal Of Regional Science And Urban Economics29:765-785
  • Kau, J.B. and D. Keenan. 2001Liability Distribution for Mortgage InsuranceThe Journal Of Risk And Insurance68:457-488
  • Kau, J.B. and P. Rubin. 2002The Growth of Government: Sources and LimitsPublic Choice34:330-346
  • Brunson, A., J.B. Kau and D. Keenan. 2002A Fixed-Rate Mortgage Valuation Model in Three State VariablesThe Journal Of Fixed Income11:17-27
  • Kau, J.B., J. Linck and P. Rubin. 2009Do Managers Listen to the MarketJournal Of Corporate Finance14(4)
  • Grovenstein, R., J.B. Kau and H. Munneke. 2011Development Value: A Real Options Approach Using Empirical DataThe 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 MarketJournal Of Real Estate Finance And Economics 44(1,2)
  • Kau, J.B., D. Keenan, C. Lyubimov and C. Slawson. 2011Subprime Mortgages and DefaultJournal Of Urban Economics70(2,3):75-87
  • Kau, J.B., D. Keenan and H. Munneke. 2012Racial Discrimination and Mortgage LendingThe Journal Of Real Estate Finance And Economics 45(2):289-304
  • Eriksen, M., J.B. Kau and D. Keenan. 2013The Impact of Second Loans on Subprime Mortgage DefaultsReal Estate Economics (Areuea)41(4):858-886
  • Kau, J.B., D. Keenan and C. Lyubimov. 2014First Mortgages, Second Mortgages, and Their DefaultThe Journal Of Real Estate Finance And Economics 48(4):Forthcoming
  • Buschbom, S., J.B. Kau and D. Keenan. 2014Prepayment and Default RiskOxford University PressChapter 8:137-156.


  • Kau, J.B., C.F. Lee and C.F. Sirmans. 1986Urban Econometrics: Model Developments and Empirical ResultsResearch In Urban Economics6(JAI Press)
  • Kau, J.B. and C.F. Sirmans. 1985Taxation and Real Estate InvestmentPrentice-Hall, Inc., Englewood Cliffs, New Jersey
  • Kau, J.B. and C.F. Sirmans. 1985Real EstateMcgraw-Hill, Inc., New York
  • Kau, J.B. 1983The Impact of the New Tax Depreciation Laws on Real Estate Small BusinessResearch Monograph, Center For Business And Economic Studies
  • Kau, J.B. and P. Rubin. 1981Congressmen, Constituents and Contributions: An Analysis of Determinants of Roll Call Voting in the House of RepresentativesMartinas Nijhoff, Publishers, Boston
  • Kau, J.B. and C.F. Sirmans. 1980Cases in Tax Planning for Real Estate InvestingNational 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