Draft:Timothy Riddiough

Riddiough received a B.B.A. in Statistics and Operations Research in 1981 and an M.S. in Finance, Investment, and Banking in 1984, both from the University of Wisconsin-Madison. He earned a Ph.D. in Real Estate and Urban Land Economics from the same institute in 1991.^[1]

Riddiough began his academic career as an assistant professor at the University of Cincinnati in 1991 and remained at the post until 1994. He then joined the Massachusetts Institute of Technology (MIT), where he held the position of assistant professor at the Department of Urban Studies and Planning. At MIT, he was promoted to associate professor in 1997 and, in 2000, was appointed associate professor with tenure there. In 2001, he joined the University of Wisconsin-Madison as an associate professor at its Department of Real Estate and Urban Land Economics and was appointed a professor there in 2002.^[1]

Riddiough was appointed the E.J. Plesko Chair from 2001 to 2015, and in 2015, he was named the James A. Graaskamp Chair at the University of Wisconsin-Madison.^[1]

In one of his early research papers, Riddiough examined equilibrium workout/default outcomes in games where the costs of foreclosures provide incentives for lenders to restructure loans and borrowers to default 'strategically'.^[2] His research was also one of the first to use the phrase 'trigger events' concerning mortgage default.^[3] Alongside colleagues, he established that flexibility in terms of land usage will contribute to the overall value of the property,^[4] and that land regulations might change the risk for developing, which could also alter the supply of housing.^[5] In related research, he argued that while the neoclassical model states that only systematic risk matters in investment decisions, it could affect expected returns as well as the discount rate associated with a project, hence its net effect on net present value is ambiguous.^[6]

Riddiough, along with colleagues, developed a model of security design for asset-backed securities, in which he proposed that splitting off a risk-free security is advantageous since the issuer of the security will incur no asymmetric losses on that security,^[7] and also highlighted that dividing securities in tranches holds potential for adding more value to overall loan sales.^[8]

• 2002 – Fellow of Homer Hoyt Institute of Advanced Studies^[9]
• 2004 – Fellow of the Real Estate Research Institute^[10]

• Childs, Paul D.; Riddiough, Timothy J.; Triantis, Alexander J. (1996). "Mixed Uses and the Redevelopment Option". Real Estate Economics. 24 (3): 317–339. doi:10.1111/1540-6229.00693. ISSN 1540-6229.
• Geltner, David; Riddiough, Timothy; Stojanovic, Srdjan (1996). "Insights on the Effect of Land Use Choice: The Perpetual Option on the Best of Two Underlying Assets". Journal of Urban Economics. 39 (1): 20–50. doi:10.1006/juec.1996.0002. ISSN 0094-1190.
• Riddiough, Timothy J (1997). "Optimal Design and Governance of Asset-Backed Securities". Journal of Financial Intermediation. 6 (2): 121–152. doi:10.1006/jfin.1997.0214. ISSN 1042-9573.
• Holland, A. Steven; Ott, Steven H.; Riddiough, Timothy J. (2000). "The Role of Uncertainty in Investment: An Examination of Competing Investment Models Using Commercial Real Estate Data". Real Estate Economics. 28 (1): 33–64. doi:10.1111/1540-6229.00792. ISSN 1540-6229.
• Ott, Steven H.; Riddiough, Timothy J.; Yi, Ha-Chin (2005). "Finance, Investment and Investment Performance: Evidence from the REIT Sector". Real Estate Economics. 33 (1): 203–235. doi:10.1111/j.1080-8620.2005.00117.x. ISSN 1540-6229.