Crises in the Housing Market: Causes, Consequences, and Policy Lessons

41 Pages Posted: 27 Nov 2019

See all articles by Carlos Garriga

Carlos Garriga

Federal Reserve Banks - Research Division

Aaron Hedlund

University of Missouri

Date Written: 2019-04-18

Abstract

The global financial crisis of the past decade has shaken the research and policy worlds out of their belief that housing markets are mostly benign and immaterial for understanding economic cycles. Instead, a growing consensus recognizes the central role that housing plays in shaping economic activity, particularly during large boom and bust episodes. This article discusses the latest research regarding the causes, consequences, and policy implications of housing crises with a broad focus that includes empirical and structural analysis, insights from the 2000's experience in the United States, and perspectives from around the globe. Even with the significant degree of heterogeneity in legal environments, institutions, and economic fundamentals over time and across countries, several common themes emerge to guide current and future thinking in this area.

Keywords: housing, mortgages, debt, crisis, foreclosure

JEL Classification: D31, D83, E21, E22, G11, G12, G21

Suggested Citation

Garriga, Carlos and Hedlund, Aaron, Crises in the Housing Market: Causes, Consequences, and Policy Lessons (2019-04-18). FRB St. Louis Working Paper No. 2019-33. Available at SSRN: https://ssrn.com/abstract=3494173

Carlos Garriga (Contact Author)

Federal Reserve Banks - Research Division ( email )

P.O. Box 442
St. Louis, MO 63166-0442
United States
(314) 444-7412 (Phone)
(314) 444-8731 (Fax)

Aaron Hedlund

University of Missouri ( email )

118 Professional Building
Columbia, MO 65211
United States

HOME PAGE: http://www.aaronhedlund.com

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