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).
Escaping liquidity traps: Lessons from the UK’s 1930s escape
Nicholas Crafts, 12 May 2013
Distorted beliefs and the financial sector
Ing-Haw Cheng, Sahil Raina, Wei Xiong, 11 April 2013
What led Wall Street to take excessive risks in the housing market before the 2008 financial crisis?
On the causes and consequences of land use regulations
Frédéric Robert-Nicoud, Christian Hilber, 18 March 2013
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.
Why is housing such a popular investment? A new psychological explanation
Thomas Alexander Stephens, Jean-Robert Tyran, 23 November 2012
In the wake of the economic crisis that began in 2007, homeowners in many countries have faced substantial losses. Prices have fallen in both nominal and real terms. In the US, for example, house prices in the first quarter of 2012 were down more than 40% in real terms from their peak (Shiller 2012). Nevertheless, housing remains a popular investment1.
Reflections on the curious contrast of public policies between Germany and the US: Real estate versus human capital
Joshua Aizenman, Ilan Noy, 25 August 2012
During the years leading to the global crisis, the US and Germany were the dominant growth poles in the Americas and Europe, respectively (ADD CITE). Their position reflected their growth performance and their dominant size.
The dynamics of homeownership among the 50+ in Europe
Agar Brugiavini, Viola Angelini, Guglielmo Weber, 12 March 2012
Vox readers can download CEPR Discussion Paper 8889 for free here.
Household Leverage and the Recession
Thomas Philippon, Virgiliu Midrigan, 16 May 2011
White suburbanisation facilitated black homeownership in the mid-20th century
Leah Boustan, Robert A Margo, 12 February 2011
Over the 20th century, the residential patterns of US households became increasingly divided by race. From 1940 to 2000, the share of the metropolitan white population who lived in the suburban ring increased from 38% to 74%, whereas, even by 2000, over 60% of the black metropolitan population remained in central cities.
Housing in inflation measurement
Stephen Cecchetti, 13 June 2007
It matters how you measure things. When economic data construction was in its infancy, Simon Kuznets, the father of National Income Accounting, was unhappy about the decision to include government expenditure in Gross Domestic Product. Kuznets felt government output was an intermediate product that fed into consumption and investment, which are the ultimate output of an economy.
- Fiscal consolidation: At what speed?Blanchard, Leigh
- Public debt and economic growth, one more timePanizza, Presbitero
- Escaping liquidity traps: Lessons from the UK’s 1930s escapeCrafts
- The lessons of the North Atlantic crisis for economic theory and policyStiglitz
- Do entrepreneurs matter?Becker, Hvide
- A tale of two depressions: What do the new data tell us? February 2010 updateEichengreen, O’Rourke
- Educated in America: College graduates and high school dropoutsHeckman, LaFontaine
- Eurozone breakup would trigger the mother of all financial crisesEichengreen
- Debt, deleveraging, and the liquidity trap: A new modelKrugman
- Panic-driven austerity in the Eurozone and its implicationsDe Grauwe, Ji
Reichlin, Baldwin, 14 April 2013
CEPR Policy Research
- Political Credit Cycles: The Case of the Euro ZoneFernández-Villaverde, Garicano, Santos
- Winning by Losing: Incentive Incompatibility in Multiple QualifiersDagaev, Sonin
- Income and schoolingBrückner, Gradstein
- Monetary Policy and Rational Asset Price BubblesGalí
- Does Supporting Passenger Railways Reduce Road Traffic Externalities?Lalive, Luechinger, Schmutzler
- How the EZ crisis is permanently changing EU institutionsMicossi
- WTO 2.0: Global governance of supply-chain tradeBaldwin
- Is US economic growth over? Faltering innovation confronts the six headwindsGordon
- The economic crisis: How to stimulate economies without increasing public debtWood
- Austerity: Too Much of a Good Thing?Corsetti