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Bloomberg features Jorda, Schularick, and Taylor findings on returns to housing v. stocks

Bloomberg highlighted findings from a new NBER Working Paper by by UCD's Oscar Jorda and Alan Taylor, joint with Moritz Schularick of the University of Bonn and New York University.

``The authors of the aforementioned study — Òscar Jordà, Moritz Schularick and Alan M. Taylor — have constructed a new database for the U.S. and 15 other advanced economies, ranging from 1870 through the present. Their striking finding is that housing returns are about equal to equity returns, and furthermore housing as an investment is significantly less risky than equities,'' columnist Tyler Cowen writes.

The authors compile and use a unique dataset extending from 1890 to 1990 for the analysis. This is the latest in a highly influential series of papers by Jorda, Schularick, and Taylor documenting "The Rate of Return on Everything" using vast troves of historical data.

According to Cowen, the study has a number of practical implications, including ``that the millennial generation, which is often house-shy due to having experienced both the real-estate bubble and high student debt, is missing out on a good investment.''