FRBSF Economic Letter
2016-27 | September 12, 2016
Bubbles, Credit, and Their Consequences
The collapse of an asset price bubble usually creates a great deal of economic disruption. But bubbles are hard to anticipate and costly to deflate. As a result, policymakers struggle to determine how they should respond, if at all. Evaluating the economic costs of past equity and real estate bubbles—with particular attention to how much credit grew during boom phases—can provide valuable insights for this debate. A recent study finds that equity bubbles are relatively benign. More danger comes from housing bubbles in which credit grows rapidly.
2018-04 | With Dupor, Karabarbounis, and Mehkari | March 2018 2017-20 | With Lange | January 2018 2017-05 | With Hornstein | February 2017 2016-31 | With Ghent | December 2016 2016-24 | With Hornstein | December 2016 2016-20 | With Coibion, Gorodnichenko, and Mondragon | August 2016 2016-13 | With Faberman | July 2016 FRB Richmond 12-03R | With Lkhagvasuren and Sysuyev | April 2012 FRB Richmond 10-13 | August 2010 Manuscript | With Lange and Hornstein | April 2014 Journal of Economic Dynamics and Control 77(in progress), April 2017, 48-69 | With Sanchez Data update web page, Federal Reserve Bank of Richmond, November 2016 | With Hornstein and Lange FRB Chicago Economic Perspectives 40(1) , May 2016 | With Faberman FRB Richmond Economic Quarterly 101(3), May 2016, 225-244 Journal of Money, Credit and Banking 48(7), 2016, 1495-1513 | With Debbaut and Ghent The Regional Economist, October 2015, 12-13 | With Reed and Canon FRB Richmond Economic Quarterly 101(3), Q3 2015, 225-244 Journal of Monetary Economics 68, November 2014, 53-67 Journal of Economic Dynamics and Control 47, October 2014, 39-53 | With Fuller and Lkhagvasuren FRB Richmond Economic Quarterly 100(2), Q2 2014, 87-111 | With Canon, Luo, and Reed FRB Richmond Economic Quarterly 100(1), Q1 2014, 1-21 | With Hornstein and Lange FRB Richmond Economic Quarterly 99(1), Q1 2013, 25-43 FRB Richmond Economic Quarterly 98(3), Q3 2012, 185-207 FRB Richmond Economic Quarterly 97(4), Q4 2011, 359-387 | With Lubik and Tompkins Review of Financial Studies 20 (9), September 2011, 3139-3186 | With Ghent FRB Richmond Economic Quarterly 96(2), Q2 2010, 179-199 Economic Letter 2018-12 | May 7, 2018
| With Hale, Krishnamurthy, and Shultz Economic Letter 2018-11 | April 16, 2018
| With Karabarbounis and Mehkari Economic Letter 2017-25 | August 28, 2017
| With Hornstein Economic Letter 2017-08 | March 27, 2017
Working Papers
Regional Consumption Responses and the Aggregate Fiscal Multiplier
Measuring Heterogeneity in Job Finding Rates among the Non-Employed Using Labor Force Status Histories
Generalized Matching Functions and Resource Utilization Indices for the Labor Market
Intergenerational Linkages in Household Credit
Estimating Matching Efficiency with Variable Search Effort
Does Greater Inequality Lead to More Household Borrowing? New Evidence from Household Data
The Intensity of Job Search and Search Duration
Systematic Job Search: New Evidence from Individual Job Application Data (Revised September 2014)
The Cyclical Price of Labor When Wages Are Smoothed
A New Measure of Resource Utilization in the Labor Market
Published Articles (Refereed Journals and Volumes)
Revisiting the Behavior of Small and Large Firms during the 2008 Financial Crisis
Hornstein-Kudlyak-Lange Non-Employment Index
What Does Online Job Search Tell Us about the Labor Market?
What We Know About Real Wage Adjustment during the 2007-09 Recession and Its Aftermath
The CARD Act and Young Borrowers: The Effects and the Affected
Aging and the Economy: The Japanese Experience
What We Know About Wage Adjustment during the 2007-09 Recession and Its Aftermath
The Cyclicality of the User Cost of Labor
Productivity Insurance: The Role of Unemployment Benefits in a Multi-Sector Model
Flows To and From Working Part Time for Economic Reasons and the Labor Market Aggregates During and After the 2007-09 Recession
Measuring Resource Utilization in the Labor Market
A Cohort Model of Labor Force Participation
Housing Services Price Inflation
Accounting for the Non-Employment of U.S. Men, 1968-2010
Recourse and Residential Mortgage Default: Evidence from U.S. States
Are Wages Rigid Over the Business Cycle?
FRBSF Publications
How Futures Trading Changed Bitcoin Prices
How Much Consumption Responds to Government Stimulus
How Much Has Job Matching Efficiency Declined?
Measuring Labor Utilization: The Non-Employment Index
Opinions expressed in FRBSF Economic Letter do not necessarily reflect the views of the management of the Federal Reserve Bank of San Francisco or of the Board of Governors of the Federal Reserve System. This publication is edited by Anita Todd. Permission to reprint must be obtained in writing.
Please send editorial comments and requests for reprint permission to
Research Library
Attn: Research publications, MS 1140
Federal Reserve Bank of San Francisco
P.O. Box 7702
San Francisco, CA 94120