应用经济学报告系列 (1112-24)

题目：Bubbles and Credit Constraints
报告人：Pengfei Wang (HKUST）
时间：2:00-3:30pm, March 23
地点：成人直播新楼216教室

Abstract:
We provide an infinite-horizon model of a production economy with credit-driven stock-price bubbles, in which firms meet stochastic investment opportunities and face credit constraints. Capital is not only an input for production, but also serves as collateral. We show that bubbles on this reproducible asset may arise, which relax collateral constraints and improve investment efficiency. The collapse of bubbles leads to a recession and a stock market crash. We show that there is a credit policy that can eliminate the bubble on firm assets and can achieve the efficient allocation.