Jump to ContentJump to Main Navigation
Show Summary Details

The B.E. Journal of Economic Analysis & Policy

Editor-in-Chief: Jürges, Hendrik / Ludwig, Sandra

Ed. by Auriol , Emmanuelle / Brunner, Johann / Fleck, Robert / Mendola, Mariapia / Requate, Till / Schirle, Tammy / de Vries, Frans / Zulehner, Christine

IMPACT FACTOR 2015: 0.250
5-year IMPACT FACTOR: 0.825

SCImago Journal Rank (SJR) 2015: 0.501
Source Normalized Impact per Paper (SNIP) 2015: 0.418
Impact per Publication (IPP) 2015: 0.455

See all formats and pricing


30,00 € / $42.00 / £23.00

Get Access to Full Text

The Mortgage Market Meltdown and House Prices

R. Glenn Hubbard1 / Christopher J Mayer2

1Columbia University,

2Columbia University,

Citation Information: The B.E. Journal of Economic Analysis & Policy. Volume 9, Issue 3, ISSN (Online) 1935-1682, DOI: https://doi.org/10.2202/1935-1682.2223, March 2009

Publication History

Published Online:


This paper argues that the U.S. mortgage debacle must be analyzed in the broader setting of global real estate markets. Recent U.S. home price growth closely tracked increases in other developed economies. The analysis distinguishes among market regions in terms of supply elasticity and localized transactions-costs. A series of user-cost models are presented which imply that interest rate fluctuations must figure prominently in any explanation of movements in price/rent ratios. National factors such as the expansion of subprime credit must also be accounted for. The paper concludes with policy prescriptions addressing rapid price declines and elevated interest-rate spreads. We argue that the federal government should play a leading role in helping to reduce interest rates on new mortgages and cushion against underwriting losses on the existing balance sheets of lenders.

Citing Articles

Here you can find all Crossref-listed publications in which this article is cited. If you would like to receive automatic email messages as soon as this article is cited in other publications, simply activate the “Citation Alert” on the top of this page.

Martin Seay, Andrew Carswell, Robert Nielsen, and Lance Palmer
Family and Consumer Sciences Research Journal, 2013, Volume 41, Number 4, Page 363
Economic Record, 2011, Volume 87, Number 279, Page 537

Comments (0)

Please log in or register to comment.