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.
本文言語 | English |
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ページ(範囲) | 1238-1266 |
ページ数 | 29 |
ジャーナル | Macroeconomic Dynamics |
巻 | 22 |
号 | 5 |
DOI | |
出版ステータス | Published - 2018 7 1 |
ASJC Scopus subject areas
- Economics and Econometrics