Section [ ]. Applying the theory to historical episodes
[DETAILED DISCUSSION TO BE ADDED]
Summing up what needs to be established in order to plausibly apply ABCT to a historical business cycle episode, the empirical work should involve the following:
  1. Finding evidence of credit expansion, in particular the growth in investment credit.
  2. Identifying the concentrated substantial investment increases, and if possible the sectors in the economy where they happen.
  3. Identifying the contested goods.
  4. If possible, providing evidence of the problems with the repayment of the loans or other types of financing related to the alleged excessively long projects.