TY  - JOUR
AU  - Jermann,Urban
AU  - Quadrini,Vincenzo
TI  - Stock Market Boom and the Productivity Gains of the 1990s
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 9034
PY  - 2002
Y2  - June 2002
UR  - http://www.nber.org/papers/w9034
L1  - http://www.nber.org/papers/w9034.pdf
N1  - Author contact info:
Urban Jermann
Finance Department
Wharton School of the University of Pennsylvania
3620 Locust Walk
Philadelphia, PA  19104
Tel: 215/898-4184
Fax: 215/898-6200
E-Mail: jermann@wharton.upenn.edu

Vincenzo Quadrini
Department of Finance and Business Economics
Marshall School of Business
University of Southern California
701 Exposition Boulevard
Los Angeles, CA 90089
Tel: 213/740-6521
Fax: 213/740-6650
E-Mail: quadrini@usc.edu
AB  - Together with a sense of entering a New Economy, the US experienced in the second half of the 1990s an economic expansion, a stock market boom, a financing boom for new firms and productivity gains. In this paper, we propose an interpretation of these events within a general equilibrium model with financial frictions and decreasing returns to scale in production. We show that the mere prospect of high future productivity growth can generate sizable gains in current productivity, as well as the other above mentioned events.
ER  -