The variables that contributed to real estate cycles were even more complex than this "chicken and egg" conundrum. 88)The skyscraper is the great architectural contribution of modern capitalistic society and is even one of the yardsticks for 20th-century superheroes, but no one had ever really connected it with the quintessential feature of modern capitalistic history — the business cycle.
The skyscraper index, created by economist Andrew Lawrence shows a correlation between the construction of the world's tallest building and the business cycle.
Is this just a coincidence, or perhaps do skyscrapers cause business cycles?
A theoretical foundation of "Cantillon effects" for the skyscraper index is provided here showing how the basic components of skyscraper construction such as technology are related to key theoretical concepts in economics such as the structure of production.
The findings, empirical and theoretical, suggest that the business-cycle theory of the Austrian School of economics has much to contribute to our understanding of business cycles, particularly severe ones.
The skyscraper, that unique celebration of secular capitalism and its values, challenges us on every level.
It offers unique opportunities for insightful analysis in the broadest terms of 20th-century art, humanity, and history.When criticism becomes captive to centers of power or prevailing theories or fashions, unwilling or unable to probe the process and the results, something important has gone wrong with one of the stabilizing and balancing forces of a mature society. 120)In the overheated speculation of the 1920s, as land prices rose, towers grew steadily taller.Or should the order be: as skyscrapers grew taller, land prices rose?The skyscraper index also accurately predicted the Great Depression with the completion of 40 Wall Tower in 1929, the Chrysler Building in 1930, and the Empire State Building in 1931.There are, however, important exceptions in the ability of the index to predict, so the first question is: how good of a predictor is the skyscraper index?Second, what is the nature of the relationship between skyscraper building and the business cycle?