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cc-by-nc-nd, (c) Clain-Chamosset-Yvrard et al., 2021
Si us plau utilitzeu sempre aquest identificador per citar o enllaçar aquest document: https://hdl.handle.net/2445/174021

Entrepreneurship, growth and productivity with bubbles [WP]

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Entrepreneurship, growth and total factor productivity are larger when there is a financial bubble. We explain these facts using a growth model with financial bubbles in which individuals face heterogeneous wages and returns on productive investment. The heterogeneity in the return of investment separates individuals between savers and entrepreneurs. Savers buy financial assets, which are deposits or a financial bubble. Entrepreneurs incur in a start-up cost and borrow to invest in productive capital. The bubble provides liquidities to credit-constrained entrepreneurs. These liquidities increase investment and entrepreneurship when the start-up cost is large enough, which explains that growth and entrepreneurship can be larger with bubbles. Finally, productivity can be larger when the bubble further increases the investment of more productive entrepreneurs. This can occur when the return of investment is correlated with wages.

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CLAIN-CHAMOSSET-YVRARD, Lise, RAURICH, Xavier, SEEGMULLER, Thomas. Entrepreneurship, growth and productivity with bubbles [WP]. _UB Economics – Working Papers_. 2021. Vol.  E21/407. [consulta: 23 de gener de 2026]. [Disponible a: https://hdl.handle.net/2445/174021]

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