July 2009, David Rosnick

This paper examines the effects of the housing bubble on equity accumulation and wealth. The paper notes that the run-up in home prices prior to the collapse of the bubble both led to a temporary increase in consumption during the peak years and, due to the bubble-induced recession, will lead to a prolonged period of lower consumption and higher personal savings resulting in a fall in GDP of over 5 percent a year since the peak of the bubble in 2006.

Report - PDF pdf_small | Flash flash_small

 survey banner

subscribe today!

Site Maintenance

"The CEPR website currently takes longer to load than usual. We hope to have this and other issues addressed shortly. While this much needed site maintenance is taking place, our content is still available so please continue to slooowwwly surf the pages of our site. Thank you for your patience."