Skyscraper Height and the Business Cycle: Separating Myth from Reality, a Comment
10 Pages Posted: 20 Aug 2015 Last revised: 27 Oct 2015
Date Written: August 10, 2015
In a recent paper in Applied Economics, Barr, Mizrach and Mundra test for the existence of a “Skyscraper Curse”. Their results led the Economist magazine to conclude that you cannot forecast the onset of recessions using the announcement or completion dates of the world’s tallest building – in effect, there is no Skyscraper Curse. This paper reinterprets Barr, Mizrach and Mundra showing that their evidence is consistent with the theory underlying the Skyscraper Curse, so that skyscraper construction is a strong signal of an impending major crisis.
Keywords: Business Cycles
JEL Classification: E32, N61, N62
Suggested Citation: Suggested Citation