Référence

Emmanuel Farhi et Jean Tirole, « Bubbly Liquidity », The Review of Economic Studies, vol. 79, n° 2, 2012, p. 678–706.

Résumé

This paper analyzes the possibility and the consequences of rational bubbles in a dynamic economy where financially constrained firms demand and supply liquidity. Bubbles are more likely to emerge, the scarcer the supply of outside liquidity and the more limited the pledgeability of corporate income; they crowd investment in (out) when liquidity is abundant (scarce). We analyze extensions with firm heterogeneity and stochastic bubbles.

Mots-clés

liquidity; bubbles;

Codes JEL

  • E2: Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy
  • E44: Financial Markets and the Macroeconomy

Partenaire de recherche

Regulation, Liquidity and Solvency Risks

Remplace

Emmanuel Farhi et Jean Tirole, « Bubbly Liquidity », IDEI Working Paper, n° 577, octobre 2009, révision février 2011.