Bubbly liquidity
By: Emmanuel Farhi, Jean Tirole
Contributors: Tirole, Jean; National Bureau of Economic Research
Series: NBER working paper series -- working paper 16750; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 16750.
Publisher: National Bureau of Economic Research
Published: 2011
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "This paper analyzes the possibility and the consequences of rational bubbles in a dy- namic economy where financially constrained firms demand and supply liquidity.  Bub- bles 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 sto- chastic bubbles"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 5/5/2011.

Includes bibliographical references.

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