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  • Jens Boysen-Hogrefe (a1), Nils Jannsen (a1) and Carsten-Patrick Meier (a2)

We investigate whether recoveries following normal recessions differ from recoveries following recessions that are associated with either banking crises or housing crises. Using a parametric panel framework that allows for a bounce-back in the level of output during the recovery, we find that normal recessions are followed by strong recoveries in advanced economies. This bounce-back is absent following recessions associated with banking crises and housing crises. Consequently, the permanent output losses of recessions associated with banking crises and housing crises are considerably larger than those of normal recessions.

Corresponding author
Address correspondence to: Nils Jannsen, Kiel Institute for the World Economy, 24100 Kiel, Germany; e-mail:
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Macroeconomic Dynamics
  • ISSN: 1365-1005
  • EISSN: 1469-8056
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