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Jerome Lyle Rappaport

Jerome Lyle Rappaport
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Edward Glaeser

Edward Glaeser
Professor of Economics at Harvard University
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Greg Massing
Executive Director for the Rappaport Center for Law and Public Service
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Alasdair Roberts
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Suffolk University Law Student

David Barron
Harvard Law School and former Deputy Counsel for the Office of Legal Counsel in the US Department of Justice

Linda Bilmes
Senior lecturer in public policy at the Harvard Kennedy School. Assistant Secretary of Commerce during the Clinton Administration.

Brandy H.M. Brooks
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Felicia Cote
Rappaport Fellow, Harvard Law School/Harvard Kennedy School.

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Suffolk University Law School student

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Student at Suffolk University Law School

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Research Director, MassINC

Arthur Hardy-Doubleday
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Theodore Kalivas
Boston Green Blog, Dukakis Center for Urban & Regional Policy

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Student, Boston University School of Law

Antoniya Owens
Research Analyst, Mathematica Policy Research, Inc.

Susan Prosnitz
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Ben Thomas
Boston Green Blog, Dukakis Center for Urban & Regional Policy

Matthew Todaro
Student at Boston College Law School

Alexander von Hoffman
Senior Researcher, Joint Center for Housing Studies

Brett Walker
Student, Boston College Law School

Margarita Warren
Student at Suffolk University Law School

Did Credit Market Policies Cause the Housing Bubble?

Wednesday, May 5th, 2010
By Edward Glaeser

This policy brief is based on the article, "Can Interest Rates and Easy Mortgage Credit Explain the Housing Boom?" and was released in conjunction with the "Understanding the Housing Collapse: What is to Blame and What Can Be Done? conference at the Federal Reserve Bank of Boston that was co-sponsored by the Federal Reserve Bank's Research Department and its New England Public Policy Center, the Rappaport Institute for Greater Boston, and the Taubman Center for State and Local Government.

Many economists have argued that aspects of the credit market, including low interest rates, can explain the boom. The evidence summarized in this Policy Brief casts doubt on the view that easy credit can explain the bubble. It isn’t that low interest rates don’t boost housing prices. They do. It isn’t that higher mortgage approval rates aren’t associated with rising home values. They are. But the impact of these variables, as predicted by economic theory and as estimated empirically over many years, is too small to explain much of the housing market event that we have just experienced. 

For the full text of this article click here.



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