4 papers
Land and Infinite Debt Rollover
Tomohiro Hirano, Alexis Akira Toda
Since McCallum (1987), it is well known that in an overlapping generations (OLG) economy with land, the equilibrium is Pareto efficient because with balanced growth, the interest r…
General-Purpose Technologies and Stock Market Bubbles
Tomohiro Hirano, Keiichi Kishi, Alexis Akira Toda
We develop a macro-finance model linking stock price bubbles to a general-purpose technology (GPT), such as information technology and artificial intelligence. Knowledge spillovers…
Rational Bubbles Attached to Real Assets
Tomohiro Hirano, Alexis Akira Toda
A rational bubble is a situation in which the asset price exceeds its fundamental value defined by the present discounted value of dividends in a rational equilibrium model. We dis…
Rational Bubbles: A Clarification
Tomohiro Hirano, Alexis Akira Toda
"Rational bubble", as introduced by the famous paper on money by Samuelson (1958), means speculation backed by nothing. The large subsequent rational bubble literature has identifi…