I am one of many colleagues and friends saddened to hear that Penn State's Austin Jaffe passed away after a short illness, while visiting Chicago. I share Brent Ambrose's initial reaction: "Austin was a good friend and a true scholar. He will be missed."
Austin and I shared a birth year, a deep if somewhat heterodox interest in real estate economics, and most famously to a small but appreciative audience, a love of movies, including their connection to real estate.
Among many other accomplishments and interests, Austin was a past president (1994) of the American Real Estate and Urban Economics Association, and a Fellow of the Weimer School of the Homer Hoyt Institute.
Austin was long associated with Penn State's real estate program; he also taught courses on film. Recently retired, in addition to his role as emeritus professor at Penn State, he took on a lecturer position at the University of California-Irvine, conveniently close to his son and family. UCI has a nice biography of Austin here.
My friend Norm Miller reflected on Austin: "He was a friend to many of us. He had recently retired and was spending more time out west in Irvine in the winter near his son's family. I recall he graduated with his PhD in 1977. In 1977 just before he graduated he discussed a USC Professor's paper on optimal holding period analysis and candidly dismissed it as irrelevant. I admired his candor although I wondered if he need a diplomacy course. We will all miss that candor."
So Austin was never afraid of an argument. Another example comes from Jeff Fisher, who recalls playing craps with Austin, along with Jim Kau, in New Orleans for an AREUEA meeting. Austin was trying to convince them that "runs" were possible. Well, as my math stat professor J.P. Dirkse III used to say, "rare events do occur," and I remember once making three foul shots in a row, so I suppose it depends on what you mean by a "run." The odds of runs in craps were discussed in the American Mathematical Monthly back in 1919, and I'm sure 1919 was not the first such discussion, and Austin Jeff and Jim will not be the last.
In my own academic specialty — real estate and the movies — we all acknowledge Austin as the true master. Many years ago, inspired by an undergraduate course in "The Film as Art," taught by Brother Gerry Molyneaux at La Salle University, I started incorporating the following thesis into my UW courses: "All great movies are essentially about real estate." Peter Colwell at Illinois was taken with the idea, and after I received some comments from Bro. Gerry, the late Carolyn Dehring, and others, Peter published my teaching notes in his Illinois Real Estate Newsletter. Austin loved the note, but of course it was incomplete. Austin actually taught courses on film as well as real estate, and had a famous collection of videotapes (ask your grandparents!) that included a lot of foreign films. Among other courses, Austin taught a course on Italian cinema. In, of course, Italy!
Well, to the point, Austin wrote a "sequel" that was a tour de force. His focus on international films was especially strong. I was blown away when I read it. I still refer to it from time to time when I'm looking for a good film to chase down somewhere on that Internet thing that's expanded our choices but lowered the quality of the experience. (Farewell, Biograph; so long, Circle Theater. Where have you gone, TLA? Well, we still have AFI!)
Austin's classic work can be downloaded here. My own effort is also available.
Austin Jaffe was an early force on other topics, of course. I especially appreciated his work on property rights, and his focus on international real estate. His paper with Lynn Fisher on home-ownership rates across countries was especially interesting. His 1980s book on modeling real estate using Lotus 1-2-3 got me started down another productive path, it gave me a lot of ideas I used in developing the so-called "Malaysia Model." Bertrand Renaud, the World Bank's long-time Housing Finance Advisor, recalls that he found Austin's work:
... original and always significant. He was a creative person who looked at the world with fresh eyes. Interacting with Austin was always stimulating. Indeed, I valued his interest in property rights that too many Western real estate economists take for granted like the gold fish in their fish bowl; but not anyone who saw centrally planned economies first hand. I would guess that Austin's immediate understanding of property right issues sprung from his connections with Eastern Europe.
And Austin was always a blast. Especially when, as Norm notes, undiplomatic!
Austin Jaffe Obituary
Norm also kindly forwarded Austin's obituary, which I reproduce below:
Austin J. Jaffe, age 66, of State College, PA, formerly of Chicago, esteemed professor in real estate/finance at Penn State University; beloved husband of Lynn, nee Laiken; loving father of Alexander (Katherine) Jaffe and Roxanne Jaffe; adored grandfather of Allison; devoted son of the late Aaron and late Shirley Jaffe; cherished brother of Yale (Susan) Jaffe; dear brother-in-law of Marlene (Barry) Rottman; treasured uncle and friend to many. Graveside service Monday 11:00 a.m. at Shalom Memorial Park, Rand & Wilke Rds., Arlington Heights.
In lieu of flowers, memorial gifts can be directed to the Smeal College of Business. Please make checks payable to The Pennsylvania State University, with the memo section noting, “Smeal College of Business/In Memory of Austin J. Jaffe.” The check should be mailed directly to: Penn State Smeal College of Business, Attn: Michelle Houser, 209 Business Building, University Park, PA 16802. Info: The Goldman Funeral Group, www.goldmanfuneralgroup.com (847) 478-1600.
Selected Readings from Austin Jaffe
Brzeski, W Jan, Austin J Jaffe, and Stellan Lundstrom. "Institutional Real Estate Investment Practices: Swedish and United States Experiences." Journal of Real Estate Research 8, no. 3 (1993): 293-324.
Fisher, Lynn M, and Austin J Jaffe. "Determinants of International Home Ownership Rates." Housing finance international 18, no. 1 (2003): 34-37.
———. "Restitution in Transition Countries." Journal of Housing and the Built Environment 15, no. 3 (2000): 233-48.
Jaffe, Austin J. Analyzing Real Estate Decisions Using Lotus 1-2-3. Reston Publishing Company, 1985.
———. "Concepts of Property, Theories of Housing, and the Choice of Housing Policy." Journal of Housing and the Built Environment 4, no. 4 (1989): 311-20.
———. "The Greatest Real Estate Movies of All Time: The Sequel." Illinois Real Estate Review, no. Winter/Spring 2001 (2001).
———. "On the Role of Transaction Costs and Property Rights in Housing Markets." Housing Studies 11, no. 3 (1996): 425-35.
———. "Toward an Evolutionary Theory of Trade Associations: The Case of Real Estate Appraisers." Real Estate Economics 16, no. 3 (1988): 230-56.
Jaffe, Austin J, and RG Bussa. "Using a Simple Model to Estimate Market Rents: A Case Study." The Appraisal Journal 45, no. 1 (1975): 7-13.
Jaffe, Austin J, and Demetrios Louziotis Jr. "Property Rights and Economic Efficiency: A Survey of Institutional Factors." Journal of Real Estate Literature 4, no. 2 (1996): 137-59.
Jaffe, Austin J, and CF Sirmans. "The Theory and Evidence on Real Estate Financial Decisions: A Review of the Issues." Real Estate Economics 12, no. 3 (1984): 378-400.
Jaffe, Austin J, and Clemon F Sirmans. Fundamentals of Real Estate Investment. Prentice hall, 1995.
Sirmans, Clemon F, and Austin J Jaffe. The Complete Real Estate Investment Handbook. Prentice Hall, 1985.
Tom, Geurts, and Jaffe Austin. "Risk and Real Estate Investment: An International Perspective." Journal of Real Estate Research 11, no. 2 (1996): 117-30.
Other References Cited
Brown, Bancroft H. "Discussion: Probabilities in the Game of" Shooting Craps."." The American Mathematical Monthly 26, no. 8 (1919): 351-52.
Malpezzi, Stephen. "The Greatest Real Estate Movies of All Time." Illinois Real Estate Review, no. Winter 1999 (1999).
