Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/123120
Authors: 
Jordà, Òscar
Schularick, Moritz
Taylor, Alan M.
Year of Publication: 
2015
Series/Report no.: 
CESifo Working Paper 5489
Abstract: 
What risks do asset price bubbles pose for the economy? This paper studies bubbles in housing and equity markets in 17 countries over the past 140 years. History shows that not all bubbles are alike. Some have enormous costs for the economy, while others blow over. We demonstrate that what makes some bubbles more dangerous than others is credit. When fueled by credit booms, asset price bubbles increase financial crisis risks; upon collapse they tend to be followed by deeper recessions and slower recoveries. Credit-financed housing price bubbles have emerged as a particularly dangerous phenomenon.
Subjects: 
boom
bust
bank lending
debt overhang
crises
local projections
JEL: 
C14
C32
E44
E51
G01
N10
N20
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.