Explaining the Housing Bubble

ArXiv ID: ssrn-1669401 “View on arXiv”

Authors: Unknown

Abstract

There is little consensus as to the cause of the housing bubble that precipitated the financial crisis of 2008. Numerous explanations exist: misguided monetary

Keywords: Housing bubble, Financial crisis, Systemic risk, Real Estate

Complexity vs Empirical Score

• Math Complexity: 2.5/10
• Empirical Rigor: 4.0/10
• Quadrant: Philosophers
• Why: The paper is primarily an economic and legal analysis of the housing bubble, relying on theoretical frameworks like information asymmetry and supply-side explanations with minimal advanced mathematics. While it uses historical data and discusses market mechanisms, it lacks backtests, quantitative models, or implementation-heavy empirical validation.

  flowchart TD
    A["Research Question: Causes of the 2008 Housing Bubble"] --> B["Data Collection: Financial, Macroeconomic, & Real Estate Data"]
    B --> C["Methodology: Econometric Analysis & Risk Modeling"]
    C --> D{"Computational Process: Identification of Systemic Risk Drivers"}
    D --> E["Key Finding: Inadequate Capital Buffers & Misguided Monetary Policy"]
    D --> F["Key Finding: Complex Derivatives Amplified Market Volatility"]
    E --> G["Outcome: Framework for Macroprudential Regulation"]
    F --> G