Rethinking housing bubbles
the role of household and bank balance sheets in modeling economic cycles
- ISBN: 9780521198097
- Editorial: Cambridge University Press
- Fecha de la edición: 2014
- Lugar de la edición: Cambridge. Reino Unido
- Encuadernación: Cartoné
- Medidas: 22 cm
- Nº Pág.: 291
- Idiomas: Inglés
In this highly original piece of work, Steven D. Gjerstad and Nobel Laureate Vernon L. Smith analyze the role of housing and its associated mortgage financing as a key element of economic cycles. The authors combine data from both laboratory and real markets to provide insight into the bubble propensity of real-world economic actors and use novel historical analysis on the Great Recession, the Great Depression, and all of the post-World War II recessions to establish the critical roles of housing, private-capital investment, and household and private institutional balance sheets in economic cycles. They develop a model that incorporates household balance sheets and bank balance sheets and offers insights based on this analysis concerning policy going forward, effectively changing the way economists think about economic cycles.
