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Monetary Policy, Vagabonding Liquidity and Bursting Bubbles in New and Emerging Markets - An Overinvestment View

Schnabl, Gunther; Hoffmann, Andreas - 2021

emerging market economies. Expansionary monetary policies in response to the burst of bubbles are argued to have contributed to … vagabonding bubbles around the globe …

Persistent link: https://www.econbiz.de/10013316825

Double-Question Survey Measures for the Analysis of Financial Bubbles and Crashes

Pesaran, M. Hashem - 2017

This paper proposes a new double-question survey method that elicits information about how individuals subjective belief valuations are compared and related to their price expectations. An individual respondent is presented with two sets of questions, one that asks about his/her belief regarding...

Persistent link: https://www.econbiz.de/10012963776

Wealth Preference and Rational Bubbles

Michau, Jean-Baptiste - 2018

conditions, there can be rational bubbles. Hence, we provide a microfoundation for bubbles that relies on a frictionless infinite …

Persistent link: https://www.econbiz.de/10012912377

Was Bernanke Right? Targeting Asset Prices May Not Be a Good Idea After All

Assenza, Tiziana - 2013

Should the central bank prevent 'excessive' asset price dynamics or should it wait until the boom spontaneously turns into a crash and intervene only afterwards? The debate over this issue goes back at least to the exchange between Bernanke-Gertler (BG) and Cecchetti but has not settled yet. In...

Persistent link: https://www.econbiz.de/10013092104

Market Depth, Leverage, and Speculative Bubbles

Enders, Zeno - 2019

We develop a model of rational bubbles based on leverage and the assumption of an imprecisely known maximum market size … lend to traders with limited liability in a bubble is endogenous. Bubbles reduce welfare of future investors. We provide … general conditions for the possibility of bubbles depending on uncertainty about market size, traders' degree of leverage and …

Persistent link: https://www.econbiz.de/10012899999

Bubbles in Hybrid Markets - How Expectations About Algorithmic Trading Affect Human Trading

Farjam, Mike - 2015

Bubbles are omnipresent in lab experiments with asset markets. Most of these experiments were conducted in environments … smaller bubbles if human traders expect algorithmic traders to be present …

Persistent link: https://www.econbiz.de/10013009851

Interjurisdictional Spillovers, Decentralized Policymaking and the Elasticity of Capital Supply

Eichner, Thomas - 2010

This paper points to the important role which the elasticity of aggregate capital supply with respect to the net rate of return to capital plays for the efficiency of policymaking in a decentralized economy with mobile capital and spillovers among jurisdictions. In accordance with previous...

Persistent link: https://www.econbiz.de/10013136697

Journey into the Unknown? Economic Consequences of Factor Market Integration Under Increasing Returns to Scale

Schäfer, Andreas - 2011

What are the dynamic consequences of comprehensive integration shocks? The answer to this question appears all but trivial. We set up a dynamic macroeconomic model of a small open economy where both capital and labor are mobile and there are increasing returns to scale at the aggregate level....

Persistent link: https://www.econbiz.de/10013117359

Asymmetric Capital-Tax Competition, Unemployment and Losses from Capital Market Integration

Pethig, Rudiger - 2010

In a multi-country general equilibrium economy with mobile capital and rigid-wage unemployment, countries may differ in capital endowments, production technologies and rigid wages. Governments tax capital at the source to maximize national welfare. They account for tax base responses to their...

Persistent link: https://www.econbiz.de/10013150802

Source Versus Residence Based Taxation with International Mergers and Acquisitions

Becker, Johannes - 2009

This paper analyses tax competition and tax coordination in a model where capital flows occur in the form of mergers and acquisitions, rather than greenfield investment. In this framework, we show that differences in residence based taxes do not necessarily distort international ownership...

Persistent link: https://www.econbiz.de/10013153614