Feb. 23 (Bloomberg) — Stabilization in U.S. home prices that may lay the foundation for a sustained recovery in the housing market is tied to government incentives to bolster the industry that precipitated the worst recession since the 1930s, said economist Robert Shiller.

“The rebound in the housing market since April seems to be related to these efforts” that include a homebuyer tax credit and Federal Reserve purchases of mortgage-backed securities designed to hold down borrowing costs, Shiller, co-creator of the S&P/Case-Shiller home-price index, said in a Bloomberg Television interview.

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