Bubbly firm dynamics and aggregate fluctuations

• 成果类型: Article
• 署名作者: Tang, Haozhou; Zhang, Donghai
• 署名单位: Dongbei University of Finance & Economics; University of Bonn
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2022.08.003
• 发表日期: 2022
• 页码: 64-80
• 关键词: Rational bubbles; Extensive margin; firm dynamics; heterogeneous firms

摘要

The transmission channel of asset bubbles is studied in a heterogeneous firm model with endogenous entry and exit. We highlight the effects of asset bubbles along the extensive margin: the aggregate bubble can boost real economic activities by affecting firms' en-try and exit decisions. Moreover, the model predicts the selection effect of bubbles: bub-bly firms-firms with asset bubbles-are less productive than bubble-less firms. Finally, we provide empirical evidence that supports bubbles' effects along the extensive margin.(c) 2022 Elsevier B.V. All rights reserved.