Capital is not back: A comment on Thomas Piketty’s ‘Capital in the 21st Century’

Odran Bonnet, Pierre-Henri Bono, Guillaume Camille Chapelle, Étienne Wasmer, 30 June 2014

a

A

The impressive success of Thomas Piketty’s book (Piketty 2014) shows that inequality is a great concern in most countries. His claim that “capital is back”, because the ratio of capital over income is returning to the levels of the end of the 19th century, is probably one of the most striking conclusions of his 700 pages.

Topics: Global economy
Tags: capital, house prices, housing, housing bubble, Inequality, rents, wealth inequality

Why are savings so high among the young in urban China?

Mark R. Rosenzweig, Junsen Zhang, 21 May 2014

a

A

A well-known phenomenon in contemporary China is the high personal savings rates of households compared with those in developed countries and many low-income countries. A less-studied aspect of this is the elevated savings rates of the young relative to the middle-aged, first shown by Chamon and Prasad (2010) based on urban household data covering the years 1986–2005 for ten provinces.

Topics: Frontiers of economic research, Global economy
Tags: China, family, housing, one-child policy, savings

The housing-market impacts of shale-gas development

Lucija Muehlenbachs, Beia Spiller, Christopher Timmins, 9 February 2014

a

A

Technological improvements in the extraction of natural gas from shale rock have transformed the industry.

Topics: Energy, Environment
Tags: externalities, fracking, house prices, housing, pollution, property prices, shale gas

Dark side of housing-price appreciation

Indraneel Chakraborty, Itay Goldstein, Andrew MacKinlay, 25 November 2013

a

A

Policymakers around the world often worry about decreases in real-estate prices and other asset prices, and take measures to prevent them. For example, in the aftermath of the financial crisis, the Federal Reserve has engaged in large-scale asset purchases – especially of mortgage-backed assets – to support the housing market and, in turn, the overall economy.

Topics: Financial markets, Monetary policy
Tags: asset prices, banks, Federal Reserve, housing, investment, lending, real estate

Speculative investors and transaction tax in the housing market

Yuming Fu, Wenlan Qian, Bernard Yeung, 7 November 2013

a

A

The Global Financial Crisis revived the idea of using transaction taxes to discourage short-term speculative trades. Such trading is often blamed for causing excess volatility in financial markets. Tobin (1978) proposed the tax more than 40 years ago, to “throw some sand in the wheels of speculation”, specifically for currency trading.

Topics: Financial markets
Tags: asset prices, financial transaction tax, housing, Singapore, stamp duty

Exports and property prices: Are they connected?

Balázs Égert, Rafał Kierzenkowski, 2 October 2013

a

A

A marked decline in France’s export-market shares

Topics: Europe's nations and regions, International trade
Tags: exports, France, housing, real estate

Real-estate valuation, current-account and credit growth patterns, before and after the 2008-09 Crisis

Joshua Aizenman, Yothin Jinjarak, 2 July 2013

a

A

The Global Crisis sparked a vibrant debate about what factors contributed to the Crisis. One question remains central to the debate:

Topics: Global crisis
Tags: credit growth, housing, real estate

Escaping liquidity traps: Lessons from the UK’s 1930s escape

Nicholas Crafts, 12 May 2013

a

A

In mid-1932, the UK had experienced a recession of a similar magnitude to that of 2008-09, was engaged in fiscal consolidation that reduced the structural budget deficit by about 4% of GDP, had short-term interest rates that were close to zero, and was in a double-dip recession (Crafts and Fearon 2013).

Topics: Europe's nations and regions
Tags: Britain, Eurozone crisis, house building, housing, UK

Distorted beliefs and the financial sector

Ing-Haw Cheng, Sahil Raina, Wei Xiong, 11 April 2013

a

A

What led Wall Street to take excessive risks in the housing market before the 2008 financial crisis?

Topics: International finance
Tags: cognitive dissonance, housing, Subprime

On the causes and consequences of land use regulations

Frédéric Robert-Nicoud, Christian Hilber, 18 March 2013

a

A

Land use regulations vary tremendously in shape and scope across space and have become more widespread and stringent over time. Although land use regulations have a long history dating back to at least the 17th century, they were initially pro-growth (McLaughin 2012). Even a century back, hardly any countries systematically regulated land use in a restrictive manner.

Topics: Industrial organisation
Tags: housing, regulation

Vox eBooks

CEPR Policy Research