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How Housing Booms Unwind: Income Effects, Wealth Effects, and Feedbacks Through Financial Markets

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  • Case, Karl E.
  • Quigley, John M.

Abstract

The mobility of consumers and producers in response to fiscal incentives gives the study of local public finance its distinctive character. Households and firms are partitioned into spatial units on the basis of preferences, costs and the incentives provided by local tax and expenditure policies. These fiscal incentives are, in turn, chosen by the members of each of these jurisdictions or clubs. Externalities within and between these localities greatly affect the efficiency of taxation and the provision of public goods and services.

Suggested Citation

  • Case, Karl E. & Quigley, John M., 2008. "How Housing Booms Unwind: Income Effects, Wealth Effects, and Feedbacks Through Financial Markets," Berkeley Program on Housing and Urban Policy, Working Paper Series qt1j05j7t5, Berkeley Program on Housing and Urban Policy.
  • Handle: RePEc:cdl:bphupl:qt1j05j7t5
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    References listed on IDEAS

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    1. Dwight M. Jaffee & John M. Quigley, 1975. "Housing Policy, Mortgage Policy, and the Federal Housing Administration," NBER Chapters, in: Measuring and Managing Federal Financial Risk, pages 97-125, National Bureau of Economic Research, Inc.
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    6. Karl E. Case & Robert J. Shiller, 1988. "The behavior of home buyers in boom and post-boom markets," New England Economic Review, Federal Reserve Bank of Boston, issue Nov, pages 29-46.
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    9. David L. Wickens & Ray R. Foster, 1937. "Non-Farm Residential Construction, 1920-1936," NBER Chapters, in: Non-Farm Residential Construction, 1920-1936, pages 1-20, National Bureau of Economic Research, Inc.
    10. Karl E. Case & Robert J. Shiller, 2003. "Is There a Bubble in the Housing Market?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 34(2), pages 299-362.
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