Document Type
Article
Publication Date
9-2014
Publication Title
American Economic Review
Department
Tuck School of Business
Abstract
We analyze whether mid-level managers in securitized finance were aware of a large-scale housing bubble and a looming crisis in 2004-2006 using their personal home transaction data. We find that the average person in our sample neither timed the market nor were cautious in their home transactions, and did not exhibit awareness of problems in overall housing markets. Certain groups of securitization agents were particularly aggressive in increasing their exposure to housing during this period, suggesting the need to expand the incentives-based view of the crisis to incorporate a role for beliefs.
DOI
10.1257/aer.104.9.2797
Dartmouth Digital Commons Citation
Cheng, Ing-Haw; Raina, Sahil; and Xiong, Wei, "Wall Street and the Housing Bubble" (2014). Dartmouth Scholarship. 2387.
https://digitalcommons.dartmouth.edu/facoa/2387
