Lamont (1997) claims to find evidence of credit market imperfections that distort financing and investment decisions of a sample of oil-dependent firms, as investment by non-oil units fell when oil cash flow dropped. However, a simple test reveals that few of these firms behaved in a fashion...

Why are housing markets so prone to boom-bust cycles? The mortgage market structure prior to the Savings and Loan crisis contributed to the volatility in real housing activity which, in turn, amplified the volatility in housing prices. The subsequent development of a national, market-based...

The collapse of the housing boom led to an unprecedented number of homeowners who are “underwater,” that is, owe more on their mortgage than their homes are worth. These homeowners cannot move without incurring significant losses on their homes, possibly causing a “lock-in” effect...

Household formation has slowed sharply since the onset of the housing and mortgage crisis, leaving millions doubled-up with family members or non-family housemates. The sustained low rate of household formation has generated an unprecedented level of pent-up demand for housing. At the same time,...

Demographics and population growth are among the most important factors affecting real estate markets. Differences in population growth between U.S. metros are driven largely by domestic migration patterns.What explains migration patterns, and can this help anticipate future conditions in...

Why are housing markets so prone to boom-bust cycles? The mortgage market structureprior to the Savings and Loan crisis contributed to the volatility in real housing activity which, in turn, amplified the volatility in housing prices. The subsequent development of a national, market-based system...

Cash holdings of nonfinancial firms range widely, and are related to firm size, industry and access to the public bond market. Cash holdings are positively correlated with agency proxies, suggesting that firms that cannot borrow easily due to agency problems hold greater cash stocks--perhaps as...