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テクニカルレポート

ディスカッション／ワーキング・ペーパー

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Institute of Social and Economic Research Discussion Papers.1096 P.1-P.50

Asset Bubbles, Unemployment, and Financial Market Frictions

The Institute of Social and Economic Research, Osaka University

英語

2020-08

http://hdl.handle.net/11094/76692

A tractable model with infinitely lived agents is constructed for the examination of bubbles and unemployment. It is demonstrated that the presence of bubbles stimulates capital accumulation and reduces unemployment. The presence of bubbles also changes the effects of government policies that target unemployment and welfare conditions in the labor market. The main findings are as follows: (i) the presence of bubbles is more beneficial to an economy with severe credit constraints; (ii) the presence of bubbles mitigates the negative effects of taxation and unemployment benefits on unemployment and welfare; and (iii) these mitigation eects decrease as credit constraints are relaxed.

Asset Bubbles, Unemployment, and Financial Market Frictions

The Institute of Social and Economic Research, Osaka University

英語

2020-08

Institute of Social and Economic Research Discussion Papers

1096

1

50

http://hdl.handle.net/11094/76692