Asset bubbles, economic growth, and a self-fulfilling financial crisis

• 成果类型: Article
• 署名作者: Kunieda, Takuma; Shibata, Akihisa
• 署名单位: Kwansei Gakuin University; Kyoto University
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2016.07.001
• 发表日期: 2016
• 页码: 70-84
• 关键词: Financial market imperfections; Economic growth; Financial crisis; Asset bubbles; Government policy

摘要

A tractable model in which asset bubbles can exist in spite of infinitely lived agents is presented. An intrinsically useless asset has a positive value and raises welfare because it helps investors with idiosyncratic productivity to obtain more credit in imperfect financial markets. However, the bubbly equilibrium is only the second best. Moreover, bubbles may burst, and this leads to recessions. The model's analytical solution allows for the study of many policies. We find that a policy of purchasing the asset avoids financial crises but nevertheless results in the second-best outcome. A policy that taxes depositors and subsidizes investors both prevents crashes and achieves the first-best outcome. (C) 2016 Elsevier B.V. All rights reserved.