House Prices and Misallocation
The Impact of the Collateral Channel on Productivity
Bibliographic Data
| ID | 9712993 |
|---|---|
| Authors | Sergi Basco (0000-0002-0044-4897, Universitat de Barcelona), David Lopez-Rodriguez (Bank of Spain), David López Rodríguez (0000-0001-5420-447X, Bank of Spain), Enrique Moral-Benito (Bank of Spain) |
| Year | 2024 |
| Volume | 135 |
| Issue | 665 |
| Pages | 1-35 |
| Publication date | 2024-12-09 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 0013-0133 • E-ISSN: 1468-0297 |
| Publisher | Oxford University Press (PUBLISHER • GB) |
| DOI | 10.1093/ej/ueae075 |
| OpenAlex | W3199921729 |
| Language | EN |
| Citations received | 2 |
| References cited | 32 |
This paper investigates the impact of local house price booms on capital misallocation within industries. Using the geographical variation provided by the Spanish housing boom (2003–7), we show that firms exposed to positive local house price shocks received more bank credit and their investment grew more when they had a higher proportion of real estate assets. This collateral channel results in an increasing dispersion of the capital-labour ratio within industries. A counterfactual calculation suggests that the capital misallocation generated by this channel can account for around 40% of the total factor productivity decline experienced by the Spanish economy during the housing boom
Boom · Capital (architecture · Collateral · Counterfactual thinking · Economics · House price · Investment (military · Labour economics · Macroeconomics · Monetary economics · Productivity · Real estate · Banking stability, regulation, efficiency · Finance · Housing Market and Economics · Housing, Finance, and Neoliberalism
Is There a Bubble in the Housing Market?
Do Firms Want to Borrow More? Testing Credit Constraints Using a Directed Lending Program
The Geographic Determinants of Housing Supply
Household Balance Sheets, Consumption, and the Economic Slump
House Prices, Home Equity–Based Borrowing, and the US Household Leverage Crisis
The Consequences of Mortgage Credit Expansion
The Collateral Channel
Capital Allocation and Productivity in South Europe
Finance and Misallocation
Estimating Production Functions Using Inputs to Control for Unobservables
Misallocation and Manufacturing TFP in China and India
The Next Generation of the Penn World Table
Testing for Weak Instruments in Linear IV Regression
Political Credit Cycles
Housing supply and housing bubbles
Credit Cycles
Capital Flows, Consumption Booms and Asset Bubbles
Assessing High House Prices
| Unique citing works | 2 |
|---|---|
| Citations per year | 2 |
| Citation span | 2026 - 2026 (1) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 2 |