Résumé
This paper analyzes the possibility and the consequences of asset price overvaluation in a dynamic economy where financially constrained firms demand and supply liquidity. Bubbles are more likely to emerge, the scarcer the supply of outside liquidity and the more limited the pledgeability of corporate income; they crowd investment in (out) when liquidity is abundant (scarce). We analyze the economic implications of firm heterogeneity, endogenous corporate governance, and stochastic bubbles. Finally we draw some implications for the way public policy could react to bubbles.
Codes JEL
- E2: Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy
- E44: Financial Markets and the Macroeconomy
Remplacé par
Emmanuel Farhi et Jean Tirole, « Bubbly Liquidity », The Review of Economic Studies, vol. 79, n° 2, 2012, p. 678–706.
Référence
Emmanuel Farhi et Jean Tirole, « Bubbly Liquidity », TSE Working Paper, n° 09-101, octobre 2009, révision février 2011.
Publié dans
TSE Working Paper, n° 09-101, octobre 2009, révision février 2011