Dynamism Diminished: The Role of Housing Markets and Credit Conditions-Reference-Cited by-同舟云学术

Dynamism Diminished: The Role of Housing Markets and Credit Conditions

Published:2024-04-01 Issue:2 Volume:16 Page:29-61
ISSN:1945-7707
Container-title:American Economic Journal: Macroeconomics
language:en
Short-container-title:American Economic Journal: Macroeconomics

Author:

Davis Steven J.¹,Haltiwanger John²

Affiliation:

1. Hoover Institution, Stanford Institute for Economic Policy Research, and National Bureau of Economic Research (email: )

2. University of Maryland, College Park and National Bureau of Economic Research (email: )

Abstract

We estimate the effects of house price changes on young-firm employment shares and industry-level employment growth in local economies. A novel test shows that house price effects on local economies work through wealth, liquidity, and collateral effects on the propensity to start new firms and expand young ones. Aggregating local effects to the national level, our estimates imply that housing market ups and downs play a major role—as transmission channel and driving force—in medium-run fluctuations in young-firm employment shares in recent decades. We also find a distinct and smaller role for locally exogenous loan-supply shifts. (JEL D22, E24, E32, G21, L25, R11, R31)

Publisher

American Economic Association

Link

https://pubs.aeaweb.org/doi/pdf/10.1257/mac.20190007

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