Showing 1 - 10 of 26
Why are asset prices so much more volatile and so often detached from their fundamental values? Why does the bursting of financial bubbles depress the real economy? This paper addresses these questions by constructing an infinite-horizon heterogeneous agent general equilibrium model with...
Persistent link: https://www.econbiz.de/10013158843
Persistent link: https://www.econbiz.de/10003848777
We study a model where some agents have private information about risky asset returns and trade to obtain capital gains, while others acquire the risky asset and hold it to maturity, forming expectations of returns based on market prices. We show that under such a structure, in addition to fully...
Persistent link: https://www.econbiz.de/10013055498
Persistent link: https://www.econbiz.de/10010356860
Persistent link: https://www.econbiz.de/10011440574
Persistent link: https://www.econbiz.de/10011548880
This paper introduces endogenous credit constraints in a search model of unemployment. These constraints generate multiple equilibria supported by self-fulfilling beliefs. A stock market bubble exists through a positive feedback loop mechanism. The collapse of the bubble tightens the credit...
Persistent link: https://www.econbiz.de/10013107960
This paper examines how online interaction between firm management and investors impacts stock price crash risk. Based on the previous literature, we postulate that online interaction constrains crash risk via two channels, i.e., deterring bad news hoarding activities of managers and decreasing...
Persistent link: https://www.econbiz.de/10013230668
Persistent link: https://www.econbiz.de/10012581368
Persistent link: https://www.econbiz.de/10012621303