SEMINAR SERIES
Macroeconomics Seminar (Joint with Macroeconomics and Economic Systems Workshop, KIER)
Keiichi, Kishi（Associate Professor, Kansai University ）
- Date&Time:
- 2025.12.18 (Thu) 16:00～17:30
- Venue:
- Room N101/102 on 1F, Kyoto Institute of Economic Research, North Bldg., Yoshida Campus, Kyoto University
- Language:
- Japanese
- Contact:
- Daishin Yasui
”Technological Innovation and Bursting Bubbles” (with Tomohiro Hirano and Alexis Akira Toda)
Abstract: We present a macro-finance model with innovation and knowledge spillover. Skilled agents engage in R&D activities (establish firms) or work in the knowledge-intensive sector. Unskilled agents work in the traditional sector. Knowledge spillover from innovations to the two sectors is initially high and uneven (unbalanced growth), but eventually weakens and equalizes (balanced growth). A rational stock bubble (prices exceed fundamentals) necessarily emerges, even though it is expected to burst with regime switching. Despite the inevitable collapse, stock bubbles and technological innovation reinforce each other and lead to permanently higher output and wages because technologies developed during the bubble era prevail.