This paper uncovers a novel mechanism by which bubbles crowd in capital investment. If capital is initially depressed … channel is a robust phenomenon that occurs along the entire time path after bubbles are injected. …

This paper uncovers a novel mechanism by which bubbles crowd in capital investment. If capital is initially depressed … channel is a robust phenomenon that occurs along the entire time path after bubbles are injected. …

of financial bubbles depress the real economy? This paper addresses these questions by constructing an infinite …-horizon heterogeneous agent general equilibrium model with speculative bubbles. We characterize conditions under which storable goods …, regardless of their intrinsic values, can carry bubbles and agents are willing to invest in such bubbles despite their positive …

-selling constraints, speculation can generate overvaluation and speculative bubbles. Leverage can substantially inflate speculative … bubbles and leverage limits depend on perceived downside risks. Shifts in beliefs about downside tail scenarios can explain … the emergence and the collapse of leveraged speculative bubbles. Speculative bubbles are related to rational bubbles, but …

's q ratio displays regular cycles of bubbles and crashes reflecting an agency problem between investors and producers. The …

's q ratio displays regular cycles of bubbles and crashes reflecting an agency problem between investors and producers. The … ; financial bubbles ; stock markets ; booms and crashes ; Tobin's q ; business cycles ; economic rents …

; misvaluation, bubbles ; real effects of financial markets …