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Asset bubbles, collateral, and policy analysis
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DOI：10.1016/j.jmoneco.2015.08.004.png)
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Abstract
En 中文
This paper provides a theory of credit-driven asset bubbles in an infinite-horizon production economy. Entrepreneurs face idiosyncratic investment distortions and credit constraints. An intrinsically useless asset such as land serves as collateral for borrowing. A land bubble can form because land commands a liquidity premium. The land bubble can provide liquidity and relax credit constraints, but can also generate inefficient over investment. Its net effect is to reduce welfare. Property taxes, Tobin's taxes, macroprudential policy, and credit policy can prevent the formation of a land bubble. (C) 2015 Elsevier B.V. All rights reserved.
Keywords:
Land bubbles
Credit constraints
Margins
Tax policies
Liquidity
Multiple equilibria
Welfare
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