Abstract
In this section, we discuss how pandemics affect the returns to capital. First, we explain how pre-industrial pandemics distorted capital (land) returns and review the existing empirical literature. Then, we focus on modern pandemics and explain their effect on housing. For modern pandemics, we focus on housing since it is the most important physical asset in industrialized economies. Lastly, we review the consequences of the Spanish Flu in Spanish housing markets and argue that modern pandemics may change capital allocation across regions.
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Basco, S., Domènech, J., Rosés, J.R. (2022). The Spanish Flu and the Capital Market. In: Pandemics, Economics and Inequality. Palgrave Studies in Economic History. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-031-05668-0_5
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DOI: https://doi.org/10.1007/978-3-031-05668-0_5
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