抄録
This paper uncovers a mechanism by which bubbles crowd in capital investment. If capital formation is initially depressed by a binding credit constraint, a bubble triggers a savings glut. Higher returns in a new bubbly equilibrium attract additional savings, which are channeled to expand investment at the extensive margin, leading to permanently higher capital, output, and wages. We demonstrate that crowding-in through this channel is a robust phenomenon that occurs along the entire time path.
| 元の言語 | English |
|---|---|
| ページ（範囲） | 1-29 |
| ページ数 | 29 |
| ジャーナル | Macroeconomic Dynamics |
| DOI | |
| 出版物ステータス | Accepted/In press - 2017 7 4 |
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ASJC Scopus subject areas
- Economics and Econometrics
これを引用
BUBBLES AND CROWDING-IN OF CAPITAL VIA A SAVINGS GLUT. / Hillebrand, Marten; Kikuchi, Tomoo; Sakuragawa, Masaya.
：: Macroeconomic Dynamics, 04.07.2017, p. 1-29.研究成果: Article
}
TY - JOUR
T1 - BUBBLES AND CROWDING-IN OF CAPITAL VIA A SAVINGS GLUT
AU - Hillebrand, Marten
AU - Kikuchi, Tomoo
AU - Sakuragawa, Masaya
PY - 2017/7/4
Y1 - 2017/7/4
N2 - This paper uncovers a mechanism by which bubbles crowd in capital investment. If capital formation is initially depressed by a binding credit constraint, a bubble triggers a savings glut. Higher returns in a new bubbly equilibrium attract additional savings, which are channeled to expand investment at the extensive margin, leading to permanently higher capital, output, and wages. We demonstrate that crowding-in through this channel is a robust phenomenon that occurs along the entire time path.
AB - This paper uncovers a mechanism by which bubbles crowd in capital investment. If capital formation is initially depressed by a binding credit constraint, a bubble triggers a savings glut. Higher returns in a new bubbly equilibrium attract additional savings, which are channeled to expand investment at the extensive margin, leading to permanently higher capital, output, and wages. We demonstrate that crowding-in through this channel is a robust phenomenon that occurs along the entire time path.
KW - Borrowing Constraints
KW - Crowding-In
KW - Rational Bubbles
KW - Savings Glut
UR - http://www.scopus.com/inward/record.url?scp=85021826235&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85021826235&partnerID=8YFLogxK
U2 - 10.1017/S1365100516000699
DO - 10.1017/S1365100516000699
M3 - Article
AN - SCOPUS:85021826235
SP - 1
EP - 29
JO - Macroeconomic Dynamics
JF - Macroeconomic Dynamics
SN - 1365-1005
ER -