Asset bubbles, labour market frictions and R&D-based growth

Ken-ichi Hashimoto and Ryonghun Im

Canadian Journal of Economics, 2019, vol. 52, issue 2, 822-846

Abstract: Employing an overlapping generations model of R&D-based growth with labour market frictions, this paper examines how employment changes induced by labour market frictions influence asset bubbles and long-run economic growth. Asset bubbles can (cannot) exist when the employment rate is high (low), which leads to higher (lower) economic growth through labour market efficiency. We also explore the steady state and transitional dynamics of bubbles, economic growth and employment. Furthermore, we show that policy or parameter changes with a negative influence on the labour market can lead to a bubble burst.

JEL-codes: J64 (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (13)

Downloads: (external link)
https://doi.org/10.1111/caje.12384 (text/html)
access restricted to subscribers

Related works:
Journal Article: Asset bubbles, labour market frictions and R&D‐based growth (2019)
Working Paper: Asset bubbles, labor market frictions, and R&D-based growth (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cje:issued:v:52:y:2019:i:2:p:822-846

Ordering information: This journal article can be ordered from
https://www.economic ... ionen/membership.php
office@economics.ca

Access Statistics for this article

Canadian Journal of Economics is currently edited by Zhiqi Chen

More articles in Canadian Journal of Economics from Canadian Economics Association Canadian Economics Association Prof. Werrner Antweiler, Treasurer UBC Sauder School of Business 2053 Main Mall Vancouver, BC, V6T 1Z2. Contact information at EDIRC.
Bibliographic data for series maintained by Prof. Werner Antweiler (werner.antweiler@ubc.ca).