Growth cycles and market crashes
成果类型：
Article
署名作者：
Boldrin, M; Levine, DK
署名单位：
University of Minnesota System; University of Minnesota Twin Cities; University of California System; University of California Los Angeles
刊物名称：
JOURNAL OF ECONOMIC THEORY
ISSN/ISSBN：
0022-0531
DOI：
10.1006/jeth.1999.2595
发表日期：
2001
页码：
13-39
关键词：
摘要：
Market booms are often followed by dramatic falls. To explain this requires an asymmetry in the underlying shocks. A straightforward model of technological progress generates asymmetries that are also the source of growth cycles. Assuming a representative consumer, we show that the stock market generally rises, punctuated by occasional dramatic falls. With high risk aversion, bad news causes dramatic increases in prices. Bad news does not correspond to a contraction of existing production possibilities, but to a slowdown in its expansion. This economy provides a model of endogenous growth cycles in which recoveries and recessions are dictated by the adoption of innovations. Journal of Economic Literature Classification Numbers: O40, G12, O41, O30. (C) 2001 Academic Press.