🌐 Global Economy May 22, 2026 · Menzie Chinn

“From Bust to Boom: Stock Market Participation and the Housing Boom”

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“From Bust to Boom: Stock Market Participation and the Housing Boom”
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That’s the title of a paper by Yanshuo Chen, (PhD, UCSC):

This paper shows that the dot-com crash contributed to the early-2000s housing boom through a household portfolio reallocation channel. Areas more exposed to declines in stock market participation experienced significantly stronger house price growth, as households shifted investment from equities toward housing. Identification relies on a shift–share design exploiting predetermined cross-state variation in stock market participati

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