Bubbles, Post-Crash Dynamics, and the Housing Market

Preprint OPEN
Crocker H. Liu; Adam Nowak; Stuart Rosenthal;
  • Subject: Housing Bubble, Repeat Sales, Post-Crash Dynamics
    • jel: jel:G12 | jel:G14 | jel:R31 | jel:R51

This paper documents and explains previously unrecognized post-crash dynamics following the collapse of a housing bubble. A simple model predicts that speculative developers ensure stable pre-crash relative prices between small and large homes while their post-crash exi... View more
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