A note on banking and housing crises and the strength of recoveries

Jens Boysen-Hogrefe, Nils Jannsen and Carsten-Patrick Meier

No 1984, Kiel Working Papers from Kiel Institute for the World Economy (IfW Kiel)

Abstract: We investigate whether recoveries following normal recessions differ from recoveries following recessions that are associated with either banking crises or housing crises. Using a parametric panel framework that allows for a bounce-back in the level of output during the recovery, we find that normal recessions are followed by strong recoveries in advanced economies. This bounce-back is absent following recessions associated with banking crises and housing crises. Consequently, the permanent output losses of recessions associated with banking crises and housing crises are considerably larger than those of normal recessions.

Keywords: business cycle; recovery; banking crisis; housing crisis (search for similar items in EconPapers)
JEL-codes: C33 E32 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-ban, nep-mac and nep-ure
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: A NOTE ON BANKING AND HOUSING CRISES AND THE STRENGTH OF RECOVERIES (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwkwp:1984

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