39 citations · 87 across the 7 of their papers we have counts for
5 papers · 1 filter
Unbalanced Growth and Land Overvaluation
Tomohiro Hirano, Alexis Akira Toda
Historical trends suggest the decline in importance of land as a production factor but its continued importance as a store of value. Using an overlapping generations model with lan…
Bubble Necessity Theorem
Tomohiro Hirano, Alexis Akira Toda
Asset price bubbles are situations where asset prices exceed the fundamental values defined by the present value of dividends. This paper presents a conceptually new perspective: t…
Housing Bubbles with Phase Transitions
Tomohiro Hirano, Alexis Akira Toda
We analyze how equilibrium housing prices are determined in the process of economic development within an overlapping generations model with perfect housing and rental markets. We…
Equilibrium Selection in Pure Bubble Models by Dividend Injection
Tomohiro Hirano, Alexis Akira Toda
Rational ``pure bubble'' models admit multiple (often a continuum of) equilibria, making predictions and policy analysis fragile. We show that if the fundamental equilibrium featur…
Leverage, Endogenous Unbalanced Growth, and Asset Price Bubbles
Tomohiro Hirano, Ryo Jinnai, Alexis Akira Toda
We develop a macro-finance model in which leverage creates a positive feedback loop between capital investment and land prices. When leverage is below a threshold, land prices equa…