Skyscraper Height and the Business Cycle: Separating Myth from Reality, a Comment

10 Pages Posted: 20 Aug 2015 Last revised: 27 Oct 2015

See all articles by Lucas Engelhardt

Lucas Engelhardt

Kent State University - Stark; Ludwig von Mises Institute

Mark Thornton

Ludwig von Mises Institute

Date Written: August 10, 2015

Abstract

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

Engelhardt, Lucas and Thornton, Mark, Skyscraper Height and the Business Cycle: Separating Myth from Reality, a Comment (August 10, 2015). Available at SSRN: https://ssrn.com/abstract=2641910 or http://dx.doi.org/10.2139/ssrn.2641910

Lucas Engelhardt

Kent State University - Stark ( email )

6000 Frank Ave NW
North Canton, OH 44720
United States

Ludwig von Mises Institute ( email )

Auburn, AL
United States

Mark Thornton (Contact Author)

Ludwig von Mises Institute ( email )

Auburn, AL
United States
334-321-2100 (Phone)

HOME PAGE: http://Mises.org

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