Asset Bubbles and Bailout
Tomohiro Hirano () and
Additional contact information
Noriyuki Yanagawa: Faculty of Economics, University of Tokyo
No CIRJE-F-838, CIRJE F-Series from CIRJE, Faculty of Economics, University of Tokyo
This paper theoretically investigates the relationship between asset price bubbles and bailout. We show that although bailout may mitigate adverse eÂ¤ects of bubbles' bursting ex-post, it is more likely to cause asset price bubbles by encouraging risk-taking behavior ex-ante. In other words, bubbles are more likely to occur, the more government bailout is anticipated. Moreover, when productivity is relatively low, the anticipated bailout accelerates bubbly booms and creates large bubbles, which results in a large scale government intervention when bubbles collapse.
Pages: 39 pages
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Journal Article: Asset bubbles and bailouts (2015)
Working Paper: Asset Bubbles and Bailouts (2015)
Working Paper: Asset Bubbles and Bailouts (2014)
Working Paper: Asset Bubbles and Bailouts (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:tky:fseres:2012cf838
Access Statistics for this paper
More papers in CIRJE F-Series from CIRJE, Faculty of Economics, University of Tokyo Contact information at EDIRC.
Bibliographic data for series maintained by CIRJE administrative office ().