The 2007-09 financial crisis challenged many long-standing beliefs about asset markets. For example, it raised questions about the applicability of the law of one price, it coincided with a period of extraordinary house price volatility, and it witnessed changing patterns of asset demand on the part of households and financial institutions alike. Over the last decade, researchers in the Asset Pricing Program have carried out a wide range of studies that are motivated by, or try to respond to, these challenges.
This report focuses on studies that exemplify post-crisis research on these three specific developments. The report is not a comprehensive review of research in the three areas, but is rather a collection of illustrative studies. Many other related papers have been distributed in the NBER Working Papers series.