Globalization and financial development: A model of the Dot-Com and the Housing Bubbles

• 成果类型: Article
• 署名作者: Basco, Sergi
• 署名单位: Universidad Carlos III de Madrid
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2013.10.008
• 发表日期: 2014
• 页码: 78-94
• 关键词: financial development; GLOBALIZATION; Rational bubbles; Housing supply elasticity

摘要

In the last decade the United States experienced the burst of the Dot-Corn and the Housing Bubbles. I develop a model to study the relationship between globalization and the emergence of rational bubbles. I also analyze how the effect of globalization on house prices depends on the type of bubble. I show that bubbles cannot arise in a financially developed country in autarky. In contrast, as globalization progresses, bubbles are more likely to appear in the financially developed country. I also show that house prices increase with globalization only when the bubble is attached to houses. This prediction is consistent with empirical evidence for U.S. metropolitan areas. (C) 2013 Elsevier B.V. All rights reserved.