Asset Bubbles and Credit Constraints
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DOI: 10.1257/aer.20160782
Abstract: We provide a theory of rational stock price bubbles in production economies with infinitely-lived agents. Firms meet stochastic investment opportunities and face endogenous credit constraints. They are not fully committed to repaying debt. Credit constraints… read more here.
Keywords: credit; bubbles credit; asset bubbles; credit constraints ... See more keywords