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Power Law and Asset Bubbles


Time:4:00pm - 5:30pm, Nov 29, 2019

Venue:Room 359S, Overseas Exchange Center, Peking University

SpeakerTomohiro Hirano

(Royal Holloway, University of London)



We develop a macroeconomic model with heterogeneous agents, endogenous growth, and financial frictions that generates a stationary distribution of wealth with Pareto tail. We characterize how Pareto exponent depends upon financial development, technological innovation, and asset price bubbles, and how those factors interact with each other. We show that more wealth concentration to the top, the emergence of asset bubbles, and macroeconomic instability are closely intertwined.




Tomohiro Hirano is an Associate Professor of Department of Economics at Royal Holloway, University of London and also a Research Associate at the Center for Macroeconomics at the London School of Economics. He was Research Fellow in the Mitsubishi Economic Research Institute between 2016 and 2017, and also served at Financial Services Agency of The Japanese Government during 2008 to 2011. His main resaerch areas include asset bubbles and economic growth. He has published papers in top economic journals, including The Review of Economic Studies and Journal of Monetary Economics. He received his Ph.D. degree in Eeconomics from the University of Tokyo, 2010.