Can optimism about technology stocks be good for welfare? Positive spillovers vs. equity market losses

Abstrakt

This paper analyzes the impact of equity market information imperfections on R&D driven growth. It paper shows that optimism in equity market can generate long-run consumption gains, despite the excess capital losses realized in the short-run.

Klíčová slova

• equity mispricing
• R&amp
• D growth
• welfare