The Great Mortgaging: Housing Finance, Crises, and Business Cycles

Alan Taylor, Moritz Schularick and Oscar Jorda

No 10161, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper unveils a new resource for macroeconomic research: a long-run dataset covering disaggregated bank credit for 17 advanced economies since 1870. The new data show that the share of mortgages on banks? balance sheets doubled in the course of the 20th century, driven by a sharp rise of mortgage lending to households. Household debt to asset ratios have risen substantially in many countries. Financial stability risks have been increasingly linked to real estate lending booms which are typically followed by deeper recessions and slower recoveries. Housing finance has come to play a central role in the modern macroeconomy.

Keywords: Business cycles; Financial crises; Leverage; Local projections; Mortgage lending; Recessions (search for similar items in EconPapers)
JEL-codes: C14 C38 C52 E32 E37 E44 E51 G01 G21 N10 N20 (search for similar items in EconPapers)
Date: 2014-09
New Economics Papers: this item is included in nep-ban, nep-his, nep-mac and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (66)

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Related works:
Journal Article: The great mortgaging: housing finance, crises and business cycles (2016)
Working Paper: The Great Mortgaging: Housing Finance, Crises, and Business Cycles (2014)
Working Paper: The Great Mortgaging: Housing Finance, Crises, and Business Cycles (2014)
Working Paper: The Great Mortgaging: Housing Finance, Crises, and Business Cycles (2014)
Working Paper: The Great Mortgaging: Housing Finance, Crises, and Business Cycles (2014)
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