With regard to the recent US house price cycle, we analyze how the interaction between housing supply restrictions … Statistical Areas, we estimate a simultaneous boom-bust system for house prices, housing supply and subprime lending. The model … accounts for regional differences in supply elasticities that are determined by local variations in topographical and …

attention is paid to supply side restrictions and financial accelerator effects related to subprime lending. Considering 248 … Metropolitan Statistical Areas across the entire US, we estimate a simultaneous boom-bust system for housing prices and supply. The … model includes non-linear regional specific supply elasticities, determined by geographical and regulatory supply …

borrowers and supply less credit to unproductive firms when collateral values rise. My results provide direct evidence that …

supply conditions, interact with expectations-driven housing market fluctuations. …