Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/130548
Authors: 
Aßmann, Christian
Boysen-Hogrefe, Jens
Jannsen, Nils
Year of Publication: 
2011
Series/Report no.: 
Kiel Working Paper 1524 [rev.]
Abstract: 
This paper analyzes the costs of housing crises in terms of GDP growth and the economic conditions under which crises are particularly costly. Housing crises are often followed by recessions that are longer than other recessions. According to empirical estimates, a housing crisis reduces the GDP growth rate in the following year on average by two percentage points and has still a considerable negative impact in the second year. One important channel through which the effect of housing crises is passed on seems to be the banking sector. In addition, our results suggest that negative wealth effects possibly cause further reductions in GDP.
Subjects: 
Housing crisis
Panel Data
JEL: 
E21
E32
C23
Document Type: 
Working Paper

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