Funding externalities, asset prices and investors' 'search for yield'

Prasanna Gai; Kamakshya Trivedi

doi:10.1111/j.1467-8586.2008.00293.x

Funding externalities, asset prices and investors' 'search for yield'

Prasanna Gai^*, Kamakshya Trivedi

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

1 Citation (Scopus)

Abstract

This note presents a simple model that nests the 'excess liquidity' and 'savings glut' hypotheses of the debate on the recent asset price boom. It clarifies the notion of investors' 'search for yield' and shows how financial frictions influence asset price dynamics.

Original language	English
Pages (from-to)	73-82
Number of pages	10
Journal	Bulletin of Economic Research
Volume	61
Issue number	1
DOIs	https://doi.org/10.1111/j.1467-8586.2008.00293.x
Publication status	Published - 2009

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abstract = "This note presents a simple model that nests the 'excess liquidity' and 'savings glut' hypotheses of the debate on the recent asset price boom. It clarifies the notion of investors' 'search for yield' and shows how financial frictions influence asset price dynamics.",

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Funding externalities, asset prices and investors' 'search for yield'

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