This paper argues that short selling might give rise to bubbles that would otherwise not exist in equilibrium. It is crucial for the argument that short selling is not the same as issuing an asset: it may require buying the stock later on. An asset with no fundamental value might be traded at...

Existing evidence shows that increases in property prices produce immediate positive effects on economic activity and, particularly, on business creation. In this paper, we ask the following question: how does a housing boom alter the selection of individuals that open a firm? The answer to this...

Existing evidence shows that increases in property prices produce immediate positive effects on economic activity and, particularly, on business creation. In this paper, we ask the following question: how does a housing boom alter the selection of individuals that open a firm? The answer to this...