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This paper shows that rising real estate prices reduce industry productivity, because they lead to a reallocation of capital and labor towards inefficient firms. I establish that the rise in real estate value during the US housing boom relaxes firms' financial constraints. Companies borrow...
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mortgage market and consider a new system that reduces risk in mortgage lending, maintains a limited government role, and … gradually removes the government-sponsored enterprises (Fannie Mae and Freddie Mac) from the mortgage market"--Provided by …
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