The Housing and Credit Bubbles in the US and Europe: A Comparison

10 Pages Posted: 11 Oct 2014 Last revised: 15 Oct 2014

See all articles by Susan M. Wachter

Susan M. Wachter

University of Pennsylvania - Wharton School, Department of Real Estate ; University of Pennsylvania - Finance Department

Date Written: October 9, 2014

Abstract

This paper examines the house price boom that occurred simultaneously in the United States and in a number of European countries in 2003 to 2007. In the United States, Spain, Ireland, the UK, the Netherlands, and Denmark, a house price boom peaked in 2007 and, in each case, was accompanied by a rapid expansion of financing — mortgage lending and mortgage securitization. Were "innovations" in securitization a common cause of the crisis of what was a global cycle? Here we consider the role of financial innovations in securitization along with the incompleteness of real estate markets in the global financial crisis.

Suggested Citation

Wachter, Susan M., The Housing and Credit Bubbles in the US and Europe: A Comparison (October 9, 2014). Available at SSRN: https://ssrn.com/abstract=2508033 or http://dx.doi.org/10.2139/ssrn.2508033

Susan M. Wachter (Contact Author)

University of Pennsylvania - Wharton School, Department of Real Estate ( email )

The Wharton School
3620 Locust Walk
Philadelphia, PA 19104-6330
United States
215-898-6355 (Phone)

HOME PAGE: http://real.wharton.upenn.edu/~wachter/index.html

University of Pennsylvania - Finance Department ( email )

The Wharton School
3620 Locust Walk
Philadelphia, PA 19104
United States

HOME PAGE: http://real.wharton.upenn.edu/~wachter/index.html

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