| 简介： | Abstract
This paper provides a theory of credit-driven housing bubbles in an infinite-horizon production economy. Entrepreneurs face idiosyncratic investment tax distortions and credit constraints. Housing is an illiquid asset and also serves as collateral for borrowing. A housing bubble can arise because house commands a liquidity premium. The housing bubble can provide liquidity and relax credit constraint, but can also generate inefficient overinvestment. Its net effect is to reduce welfare. Property taxes, Tobin’s taxes, macroprudential policy, and credit policy can prevent the formation of a housing bubble.
Keywords: Housing Bubbles, Credit Constraints, Margin, Tax Policy, Liquidity, Multiple
Equilibria
JEL codes: D92, E22, E44, G1
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