Capital constraints and asset bubbles: An experimental study

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2021
Volume: 183
Issue: C
Pages: 75-88

Authors (3)

Coppock, Lee A. (not in RePEc) Harper, Daniel Q. (not in RePEc) Holt, Charles A. (University of Virginia)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper evaluates the effects of credit constraints in an asset market experiment with present value considerations induced by interest payments on cash. All markets exhibit price bubbles, with peak prices exceeding the present value of dividends and redemptions by 30–130%. Starting with a baseline condition (low income, tight credit), a relaxation of credit constraints generates significantly higher price bubbles. A price increase of similar magnitude results from an increase in exogenous income, holding credit tightness constant.

Technical Details

RePEc Handle
repec:eee:jeborg:v:183:y:2021:i:c:p:75-88
Journal Field
Theory
Author Count
3
Added to Database
2026-02-02