Essays on Government Policies in Finance and Real Estate

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Abstract

The finance and real estate sectors are central to economic development and societal well-being, yet both face pressing challenges shaped by regulatory frameworks and dynamic market conditions. Academic research cannot remain detached from these debates. Instead, rigorous empirical analyses are essential to identify areas where governmental regulation and market mechanisms can be improved, ...

Abstract

The finance and real estate sectors are central to economic development and societal well-being, yet both face pressing challenges shaped by regulatory frameworks and dynamic market conditions. Academic research cannot remain detached from these debates. Instead, rigorous empirical analyses are essential to identify areas where governmental regulation and market mechanisms can be improved, providing evidence-based policy guidance. This dissertation contributes to this endeavor by offering independent policy advice based on data-driven analyses.

The thesis consists of three empirical studies, each addressing a politically relevant question at the intersection of finance, real estate, and public policy. Together, these studies demonstrate how academic research can bridge the gap between theory and practice, supporting more effective policymaking.

The first paper, The Effect of Commission Bans on Household Wealth: Evidence from OECD Countries, investigates the implications of regulatory reforms in financial advisory markets. It shows that banning commission-based remuneration increases household wealth returns by better aligning advisor incentives with client outcomes. The findings move beyond classical debates around financial literacy by highlighting broader institutional factors that shape regulatory change.

The second paper, Does Residential Land Development Pay off Fiscally?, examines the fiscal consequences of residential land development for German municipalities. Using spatial econometric models, it demonstrates that residential development can significantly raise municipal income tax revenues. This evidence challenges the prevalent municipal preference for commercial land development, which is primarily motivated by business tax revenues. Instead, the results support a proactive residential land policy, which not only enhances fiscal capacity but also addresses severe housing shortages.

The third paper, Living on the Highway? Addressing Highway Infrastructure Potential through Object Detection, explores the acute shortage of Heavy Goods Vehicle (HGV) parking in Germany. Drawing on advanced object detection techniques applied to satellite imagery, the study maps current infrastructure and identifies regions of critical undersupply. The results provide actionable insights both for policymakers, who must address infrastructure bottlenecks as freight volumes rise, and for real estate developers, who can use these data-driven insights to identify high-demand investment opportunities.

Overall, this dissertation seeks to address contemporary policy debates in finance and real estate through independent, evidence-based analysis. Rather than advocating for either deregulation or overregulation, the findings underscore the importance of targeted re-regulation to foster positive economic and social outcomes. By doing so, the thesis contributes not only to academic discourse but also to practical policymaking, demonstrating the potential of empirical research to inform decisions of high societal relevance.