Banking Integration and House Price Comovement

Augustin Landier, David Alexandre Sraer and David Thesmar

Working Papers from HAL

Abstract: The correlation across US states in house price growth increased steadily between 1976 and 2000. This paper shows that the contemporaneous geographic integration of the US banking market, via the emergence of large banks, was a primary driver of this phenomenon. To this end, we first theoretically derive an appropriate measure of banking integration across state pairs and document that house price growth correlation is strongly related to this measure of financial integration. Our IV estimates suggest that banking integration can explain up to one fourth of the rise in house price correlation over this period.

Keywords: Banks; House price comovement; Financial Integration (search for similar items in EconPapers)
Date: 2013-10-30
References: Add references at CitEc
Citations: View citations in EconPapers (2)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Banking integration and house price co-movement (2017)
Working Paper: Banking integration and house price comovement (2017)
Working Paper: Banking Integration and House Price Comovement (2014)
Working Paper: Banking Integration and House Price Comovement (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:hal-02058247

DOI: 10.2139/ssrn.2347315

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().