This paper provides evidence that the recent housing bust in the United States precipitated a “credit crunch” for small businesses. We compare banks' small business lending in the same metropolitan areas, and find that those that originated or purchased more of their mortgage loans in...

Using data for 70 U.S. metropolitan areas, this study explores spatial heterogeneity in house price dynamics. We use recent advances in panel econometrics that allow for spatial heterogeneity, cross-sectional dependence, and non-stationary but cointegrated data. We test for spatial differences...