Asset bubbles, entrepreneurial risks, and economic growth

• 成果类型: Article
• 署名作者: Hori, Takeo; Im, Ryonghun
• 署名单位: Institute of Science Tokyo; Tokyo Institute of Technology; Kwansei Gakuin University
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2023.105663
• 发表日期: 2023
• 关键词: Asset bubbles; Idiosyncratic risks; Growth effect; welfare analysis

摘要

Entrepreneurs are exposed to large uninsured risks, which may discourage them from creating productive assets. This may generate productive asset shortages and stimulate speculative demand for bubbles. This study introduces uninsured entrepreneurial risks into a textbook growth model with infinitely-lived agents. In the model, entrepreneurs face no credit constraints. If the degree of entrepreneurial risks is in the middle range, bubbles are likely to emerge. If the degree is high, bubbles promote growth because of the wealth effect. Otherwise, bubbles lower growth. The effect of the collapse of bubbles also depends on the degree of the risks. Moreover, asset bubbles amplify a small and temporal negative technology shock. (c) 2023 The Author(s). Published by Elsevier Inc. This is an open access article under the CC BY-NC-ND license (http://creativecommons .org /licenses /by -nc -nd /4 .0/).