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Theoretical Notes on Bubbles and the Current Crisis
Martin, Alberto; Ventura, Jaume - Barcelona Graduate School of Economics (Barcelona GSE) - 2010
We explore a view of the crisis as a shock to investor sentiment that led to the collapse of a bubble or pyramid scheme in financial markets. We embed this view in a standard model of the financial accelerator and explore its empirical and policy implications. In particular, we show how the...
Persistent link: https://www.econbiz.de/10010851442
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Managing Credit Bubbles
Martín, Alberto; Ventura, Jaume - Barcelona Graduate School of Economics (Barcelona GSE) - 2015
We study a dynamic economy where credit is limited by insufficient collateral and, as a result, investment and output …
Persistent link: https://www.econbiz.de/10011266628
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Global Bifurcations, Credit Rationing and Recurrent Hyperinflations
Gomis-Porqueras, Pere; Haro, Àlex - Barcelona Graduate School of Economics (Barcelona GSE) - 2005
This paper proposes an alternative explanation to recurrent hyperinflations other than bounded rationality by explicitly considering the global dynamics of an economy with credit market frictions. In this paper we show that hyperinflations are self-generated and are manifestations of the...
Persistent link: https://www.econbiz.de/10010547357
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Economic Growth with Bubbles
Ventura, Jaume; Martin, Alberto - Barcelona Graduate School of Economics (Barcelona GSE) - 2010
equilibriumdispersion in the rates of return to investment. During bubbly episodes, unproductive investors demand bubbles while productive … investors supply them. Because of this, bubbly episodes channel resources towards productive investment raising the growth rates … of capital and output. The model also illustrates that the existence of bubbly episodes requires some investment to be …
Persistent link: https://www.econbiz.de/10010547394
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Understanding Bubbly Episodes
Carvalho, Vasco; Martín, Alberto; Ventura, Jaume - Barcelona Graduate School of Economics (Barcelona GSE) - 2012
Persistent link: https://www.econbiz.de/10010547407
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Balance Sheet Recessions with Informational and Trading Frictions
Asriyan, Vladimir - Barcelona Graduate School of Economics (Barcelona GSE) - 2015
Balance sheet recessions result from concentration of macroeconomic risks on the balance sheets of leveraged agents. In this paper, I argue that information dispersion about the future states of the economy combined with trading frictions in financial markets can explain why such concentration...
Persistent link: https://www.econbiz.de/10011123587
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Financing Constraints, Irreversibility, and Investment Dynamics
Caggese, Andrea - Barcelona Graduate School of Economics (Barcelona GSE) - 2001
cyclical behavior of aggregate fixed investment, variable capital investment, and output in the presence of persistent … fixed capital investment is reinforced by the financing constraint. Second, the effect of the financing constraint on … variable capital investment is reinforced by the irreversibility constraint. Finally, the interaction between the two …
Persistent link: https://www.econbiz.de/10010547393
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Gifts of Mars: Warfare and Europe's Early Rise to Riches
Voigtländer, Nico; Voth, Hans-Joachim - Barcelona Graduate School of Economics (Barcelona GSE) - 2013
Today, per capita income differences around the globe are large – varying by as much as a factor of 35 across countries (Hall and Jones 1999). These differentials mostly reflect the "Great Divergence" (Sam Huntingon) – the fact that Western Europe and former European colonies grew rapidly...
Persistent link: https://www.econbiz.de/10010851348
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Recursive Contracts
Marcet, Albert; Marimon, Ramon - Barcelona Graduate School of Economics (Barcelona GSE) - 2011
We obtain a recursive formulation for a general class of contracting problems involving incentive constraints. These constraints make the corresponding maximization sup problems non-recursive. Our approach consists of studying a recursive Lagrangian. Under standard general conditions, there is a...
Persistent link: https://www.econbiz.de/10010851446
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How the West ’Invented’ Fertility Restriction
Voigtländer, Nico; Voth, Hans-Joachim - Barcelona Graduate School of Economics (Barcelona GSE) - 2010
Europeans restricted their fertility long before other parts of the world did so. By raising the marriage age of women, and ensuring that a substantial proportion remained celibate, the "European Marriage Pattern" (EMP) reduced childbirths by up to 40%. We analyze the rise of this first...
Persistent link: https://www.econbiz.de/10011019709