@techreport{NBERw14446,
 title = "Market Responses to the Panic of 2008",
 author = "Casey Mulligan and Luke Threinen",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "14446",
 year = "2008",
 month = "October",
 URL = "http://www.nber.org/papers/w14446",
 abstract = {We model the panic of 2008 as part of the wealth and substitution effects deriving from a housing price crash that began in 2006.  The dissipation of the wealth effect stimulates a reorganization of the banking industry and increases in employment, GDP, and unemployment.  The release of resources from the housing sector lowers investment goods prices, and thereby devalues existing non-residential capital while stimulating non-residential investment.  These predictions are compared with measured U.S. economic performance from 2006 to 2008 Q2.},
}