The subprime crisis weathering the storm in the US., Canada and Australia

The subprime crisis impacted not only the U.S. but other countries. However, the responses to the crisis and the outcomes observed varied enormously across, for example, the U.S., Canada and Australia. While we have discussed the institutional and regulatory differences across these countries in an earlier study, here we focus specifically on differences in securitization and in house price changes for the three countries. We provide a description of the residential mortgage backed securities market in Canada and Australia, as well as a description of the changes in house prices over the decade, culminating in causality tests for the movements. Presented at Annual Meeting of the American Real Estate and Urban Economics Association