Title: Bubbly liquidity
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.