Did Credit Market Policies Cause the Housing Bubble?(2010)
Between 2000 and 2006, the CaseShiller/Standard and Poor’s Housing Price Index increased by 74 percent in real terms, as America experienced a massive housing bubble. Moreover, prices in some metropolitan areas grew even faster. Prices in Los Angeles, for example, rose by 130 percent during this period while prices in greater Tampa rose by 97 percent over this time. As the bubble burst, that index dropped by a third and major financial institutions became insolvent, at least partially because of housing-related losses. What caused this great boom-bust cycle that tore through America’s housing markets?
Publication DateMay, 2010
Citation InformationEdward L Glaeser, Joshua D Gottlieb and Joseph Gyourko. "Did Credit Market Policies Cause the Housing Bubble?" (2010)
Available at: http://works.bepress.com/joshua_gottlieb/12/