Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/193555
Authors: 
Landier, Augustin
Sraer, David
Thesmar, David
Year of Publication: 
2017
Series/Report no.: 
ESRB Working Paper Series 48
Abstract: 
The correlation across US states in house price growth increased steadily between 1976 and 2000. This paper shows that the contemporaneous geographic integration of the US banking market, via the emergence of large banks, was a primary driver of this phenomenon. To this end, we first theoretically derive an appropriate measure of banking integration across state pairs and document that house price growth correlation is strongly related to this measure of financial integration. Our IV estimates suggest that banking integration can explain up to one fourth of the rise in house price correlation over this period.
Subjects: 
Financial Integration
Comovement
House Prices
JEL: 
G21
F65
R30
Persistent Identifier of the first edition: 
ISBN: 
978-92-95081-93-2
Document Type: 
Working Paper
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