【Macro/Finance webinar】Investment Externalities in Models of Fire Sales

  • 研討會日期 : 2021-04-16
  • 時間 : 09:00
  • 主講人 : Professor Pablo Kurlat
  • 地點 : online
  • 演講者簡介 : Professor Kurlat received his Ph.D. in Economics from Massachusetts Institute of Technology in 2010. He is currently an Associate Professor at University of Southern California. His research field is Macroeconomics.
  • 演講摘要 : In canonical models with financial constraints, the possibility of fire sales creates a pecuniary externality that results in ex-ante overinvestment. I show that this result is sensitive to the microfoundations for fire sales. If they result from asymmetric information instead of misallocation, the overinvestment result is reversed. However, there may be a tradeoff between present and future underinvestment. Macroprudential policy may need to treat different types of investment differently.