Growth, financial development, and housing booms

Taejun Lim

doi:10.1016/j.econmod.2017.09.008

Growth, financial development, and housing booms

Taejun Lim

Department of Economics

Research output: Contribution to journal › Article › peer-review

27 Scopus citations

Abstract

We present a quantitative model to assess the effect of a housing boom on economic growth. In the model, a housing boom boosts economic growth through expanding homeowning entrepreneurs’ borrowing capacities and mitigating capital misallocation, however, at different rates across different levels of financial development. Our analysis of 23 housing boom episodes in 54 countries from 1995 to 2012 corroborates the model's implication: economic growth during a housing boom is greater in countries with less developed financial systems.

Original language	English
Pages (from-to)	91-102
Number of pages	12
Journal	Economic Modelling
Volume	69
DOIs	https://doi.org/10.1016/j.econmod.2017.09.008
State	Published - Jan 2018

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 8 Decent Work and Economic Growth

Keywords

Economic growth
Entrepreneurship
Financial development
Housing collateral

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10.1016/j.econmod.2017.09.008

Cite this

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title = "Growth, financial development, and housing booms",

abstract = "We present a quantitative model to assess the effect of a housing boom on economic growth. In the model, a housing boom boosts economic growth through expanding homeowning entrepreneurs{\textquoteright} borrowing capacities and mitigating capital misallocation, however, at different rates across different levels of financial development. Our analysis of 23 housing boom episodes in 54 countries from 1995 to 2012 corroborates the model's implication: economic growth during a housing boom is greater in countries with less developed financial systems.",

keywords = "Economic growth, Entrepreneurship, Financial development, Housing collateral",

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year = "2018",

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doi = "10.1016/j.econmod.2017.09.008",

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AU - Lim, Taejun

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N2 - We present a quantitative model to assess the effect of a housing boom on economic growth. In the model, a housing boom boosts economic growth through expanding homeowning entrepreneurs’ borrowing capacities and mitigating capital misallocation, however, at different rates across different levels of financial development. Our analysis of 23 housing boom episodes in 54 countries from 1995 to 2012 corroborates the model's implication: economic growth during a housing boom is greater in countries with less developed financial systems.

AB - We present a quantitative model to assess the effect of a housing boom on economic growth. In the model, a housing boom boosts economic growth through expanding homeowning entrepreneurs’ borrowing capacities and mitigating capital misallocation, however, at different rates across different levels of financial development. Our analysis of 23 housing boom episodes in 54 countries from 1995 to 2012 corroborates the model's implication: economic growth during a housing boom is greater in countries with less developed financial systems.

KW - Economic growth

KW - Entrepreneurship

KW - Financial development

KW - Housing collateral

UR - https://www.scopus.com/pages/publications/85030478817

U2 - 10.1016/j.econmod.2017.09.008

DO - 10.1016/j.econmod.2017.09.008

M3 - Article

AN - SCOPUS:85030478817

SN - 0264-9993

VL - 69

SP - 91

EP - 102

JO - Economic Modelling

JF - Economic Modelling

ER -

Growth, financial development, and housing booms

Abstract

UN SDGs

Keywords

Access to Document

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