We explore empirically how capital inflows into the US and financial deregulation within the United States interacted in driving the run-up (and subsequent decline) in US housing prices over the period 1990-2010. To obtain an ex ante measure of financial liberalization, we focus on the history of interstate-banking deregulation during the 1980s, i.e. prior to the large net capital inflows into the US from China and other emerging economies. Our results suggest a long shadow of deregulation: in states that opened their banking markets to out-of-state banks earlier, house prices were more sensitive to capital inflows.


Iryna Stewen

Johannes Gutenberg University Mainz

Die Veranstaltung findet in englischer Sprache statt.


11.03.2014 | 13.30 - 14.30 Uhr


ZEW, L 7,1 D-68161 Mannheim


Research Associate