Martin, Alberto; Moral-Benito, Enrique; Schmitz, Tom - 2019
How do housing bubbles affect other economic sectors? We show that in the presence of collateral constraints, a bubble … initially raises housing credit demand and crowds out credit to non-housing firms. If the bubble lasts, however, housing credit … consistent with evidence from the recent Spanish housing bubble. Initially, credit growth of non-housing firms was lower at banks …