Beliefs and the net worth trap

IF 1.4 3区 经济学 Q3 ECONOMICS
Goutham Gopalakrishna , Seung Joo Lee , Theofanis Papamichalis
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引用次数: 0

Abstract

We develop a tractable framework to explore how beliefs about long-term economic growth shape macroeconomic and financial stability. By modeling belief distortions among productive capital users, we provide an analytical characterization of a novel phenomenon termed the “net worth trap”, wherein overly optimistic or pessimistic beliefs among productive agents prevent them from rebuilding wealth, causing permanent inefficiencies. A procyclical swing in beliefs reduces or exacerbates the instability, indicating that the type of belief when the economy is vulnerable has important consequences on financial stability and macroeconomic dynamics.
信念和净值陷阱
我们开发了一个易于操作的框架来探讨对长期经济增长的信念如何影响宏观经济和金融稳定。通过对生产资本使用者的信念扭曲进行建模,我们对一种被称为“净值陷阱”的新现象进行了分析描述,在这种现象中,生产主体过于乐观或悲观的信念阻碍了他们重建财富,从而导致永久性的低效率。信念的顺周期波动减少或加剧了不稳定性,表明经济脆弱时的信念类型对金融稳定和宏观经济动态产生重要影响。
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来源期刊
CiteScore
2.50
自引率
12.50%
发文量
135
期刊介绍: The Journal of Economic Theory publishes original research on economic theory and emphasizes the theoretical analysis of economic models, including the study of related mathematical techniques. JET is the leading journal in economic theory. It is also one of nine core journals in all of economics. Among these journals, the Journal of Economic Theory ranks fourth in impact-adjusted citations.
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