Séminaire COURNOT – Thomas SEEGMULLER (Aix-Marseille School of Economics)

Détails de l'événement :

Title: Entrepreneurship, growth and productivity with bubbles

Co-authors: Lise Clain-Chamosset-Yvrard, Xavier Raurich, Thomas Seegmuller

Abstract: Entrepreneurship, growth and total factor productivity are larger when asset prices are high and decline during financial crises. We explain these facts using a growth model with bubbles in which individuals have heterogeneous wages and returns on productive investment. Heterogeneity 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. Finally, the bubble may increase productivity when the return on investment is correlated with wages.

JEL classification: E22; E44; G12.
Keywords: Bubble, entrepreneurship, growth, productivity.