3D Point Capsule Networks

In this paper, we propose 3D point-capsule networks, an auto-encoder designed to process sparse 3D point clouds while preserving spatial arrangements of the input data. 3D capsule networks arise as a direct consequence of our novel unified 3D auto-encoder formulation. Their dynamic routing scheme and the peculiar 2D latent space deployed by our approach bring in improvements for several common point cloud-related tasks, such as object classification, object reconstruction and part segmentation as substantiated by our extensive evaluations. Moreover, it enables new applications such as part interpolation and replacement

3D Point Capsule Networks

In this paper, we propose 3D point-capsule networks, an auto-encoder designed to process sparse 3D point clouds while preserving spatial arrangements of the input data. 3D capsule networks arise as a direct consequence of our novel unified 3D auto-encoder formulation. Their dynamic routing scheme and the peculiar 2D latent space deployed by our approach bring in improvements for several common point cloud-related tasks, such as object classification, object reconstruction and part segmentation as substantiated by our extensive evaluations. Moreover, it enables new applications such as part interpolation and replacement.Comment: As published in CVPR 2019 (camera ready version), with supplementary materia

Monetary and Fiscal Stimuli, Ownership Structure, and China's Housing Market

In the recent financial crisis, macroeconomic stimuli produced mixed results across developed economies. In contrast, China's stimulus boosted real GDP growth from an annualized 6.2% in the first quarter of 2009 trough to 11.9% in the first quarter of 2010. Amidst this phenomenal response, land auction and house prices in major cities soared. We argue that the speed and efficacy of China's stimulus derives from state control over its banking system and corporate sector. Beijing ordered state-owned banks to lend, and they lent. Beijing ordered centrally-controlled state-owned enterprises (SOEs) to invest, and they invested. However, our data show that much of this investment was highly leveraged purchases of real estate. Residential land auction prices in eight major cities rose about 100% in 2009, controlling for quality variation. Moreover, higher price rises occur these SOEs are more active buyers. We argue that these centrally-controlled SOEs overbid substantially, fueling a real estate bubble; and that China's seemingly highly effective macroeconomic stimulus package may well have induced costly resource misallocation.Monetary stimuli; Fiscal Stimuli; Ownership Structure; Housing Market; China

The Wharton/NUS/Tsinghua Chinese Residential Land Price Indexes (CRLPI) White Paper

We appreciate the advice and insight of our colleagues Professor Hongyu Liu and Dr. Siqi Zheng on various parts of this project, although we obviously are responsible for any remaining errors. Excellent research assistance was provided by Bo Zhang, Pu Wang, Wei Guo, Mingyue Li, Baoyi Hu, Jingting Huang, and Chenxi Zhao from Tsinghua University, Ying Chen, Hui Liu and Chen Zheng from Wharton, and Jia He and Mingying Xu from the National University of Singapore. Gyourko thanks the Global Research Initiatives Project of the Wharton School at the University of Pennsylvania for financial support. Deng thanks the Institute for Real Estate Studies at the National University of Singapore for financial support. Wu thanks Hang Lung Center for Real Estate at Tsinghua University and the National Natural Science Foundation of China for financial support (No. 712003060 & No. 71373006)

Evaluating Conditions in Major Chinese Housing Markets

High and rising prices in Chinese housing markets have attracted global attention. Price-to-rent ratios in Beijing and seven other large markets across the country have increased by 30% to 70% since the beginning of 2007. Current price-to-rent ratios imply very low user costs of no more than 2%–3% of house value. Very high expected capital gains appear necessary to justify such low user costs of owning. Our calculations suggest that even modest declines in expected appreciation would lead to large price declines of over 40% in markets such as Beijing, absent offsetting rent increases or other countervailing factors. Price-to-income ratios also are at their highest levels ever in Beijing and select other markets, but urban income growth has outpaced price appreciation in major markets off the coast. Much of the increase in prices is occurring in land values. Using data from the local land auction market in Beijing, we are able to produce a constant quality land price index for that city. Real, constant quality land values have increased by nearly 800% since the first quarter of 2003, with half that rise occurring over the past two years. State-owned enterprises controlled by the central government have played an important role in this increase, as our analysis shows they paid 27% more than other bidders for an otherwise equivalent land parcel

Real Estate Collateral Value and Investment: The Case of China

Previous research on the United States and Japan finds economically large impacts of changing real estate collateral value on firm investment that amplified the business cycles of those countries. Working with unique data on land values in 35 major Chinese markets and a panel of firms outside the real estate industry, we estimate investment equations that yield no evidence of a collateral channel effect. Further analysis indicates that China’s debt is not characterized by the frictions that give rise to collateral channel effects elsewhere. Essentially, financially constrained borrowers appear able credibly to commit to repay debt in China. While there is no impact on investment via the collateral channel, our results should not be interpreted as implying there will be no negative fallout from a potential real estate bust on the Chinese economy. There likely would be, but through different channels

One fundamental and two taxes: when does a Tobin tax reduce financial price volatility?

We aim to make two contributions to the literature on the effects of transaction costs on financial price volatility. First, by augmenting a double differencing approach with a research design with three ingredients (a common set of companies simultaneously listed on two stock exchanges, binding capital controls, and different timing of changes in transaction costs), we obtain a control group that has identical corporate fundamentals as the treatment group. We apply the research design to Chinese stocks that are cross-listed in Hong Kong and Mainland China. Second, we allow transaction costs to have different effects in markets with different maturity. We find a significantly negative relationship, on average, between stamp duty increase and price volatility. However, this average effect masks some important heterogeneity. In particular, when institutional investors have become a significant part of the traders’ pool, we find an opposite effect. Overall, our results suggest that a Tobin tax could work in an immature market, but can backfire in a more developed market

Evaluating Conditions in Major Chinese Housing Markets

High and rising prices in Chinese housing markets have attracted global attention, as well as the interest of the Chinese government and its regulators. Housing markets look very risky based on the stylized facts we document. Price-to-rent ratios in Beijing and seven other large markets across the country have increased from 30% to 70% since the beginning of 2007. Current price-to-rent ratios imply very low user costs of no more than 2%-3% of house value. Very high expected capital gains appear necessary to justify such low user costs of owning. Our calculations suggest that even modest declines in expected appreciation would lead to large price declines of over 40% in markets such as Beijing, absent offsetting rent increases or other countervailing factors. Price-to-income ratios also are at their highest levels ever in Beijing and select other markets. Much of the increase in prices is occurring in land values. Using data from the local land auction market in Beijing, we are able to produce a constant quality land price index for that city. Real, constant quality land values have increased by nearly 800% since the first quarter of 2003, with half that rise occurring over the past two years. State-owned enterprises controlled by the central government have played an important role in this increase, as our analysis shows they paid 27% more than other bidders for an otherwise equivalent land parcel.

Evaluation of Reverse Mortgage Programs in Korea

We analyze an actuarial model of reverse mortgage programs in Korea. Our analyses provide a comparison between the reverse mortgage loans structured with constant monthly payments and those that make graduate monthly payments which are indexed to the growth rate of consumer prices. Using the total annual loan cost measure, we find that the graduate monthly payments approach is more efficient than the constant monthly payments approach. Our analyses also confirms that younger age cohorts are more sensitive to changes in their loan terms. We propose therefore that the terms of reverse mortgage programs should be structured more conservatively for the relatively younger borrower groups. The results provide useful information to reverse mortgage borrowers considering the various payment options, and pertinent guidelines for the future operation of reverse mortgage systems in Korea and elsewhere