Bubbles and Total Factor Productivity
This paper presents an infinite-horizon model of production economies in which firms face idiosyncratic productivity shocks and are subject to endogenous credit constraints. Credit-driven stock price bubbles can arise which can relax credit constraints and reallocate capital more efficiently among firms. The collapse of bubbles causes a fall of total factor productivity.
Year of publication: |
2012
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Authors: | Miao, Jianjun ; Wang, Pengfei |
Published in: |
American Economic Review. - American Economic Association - AEA. - Vol. 102.2012, 3, p. 82-87
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Publisher: |
American Economic Association - AEA |
Saved in:
Online Resource
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