CV - Job Market Paper  

Tang, Haozhou

Job market candidate

Contact information

Tel. +34 93 542 1657

Available for Interviews at :

Simposio de la Asociación Española de Economía (SAEe), December 15-17, Bilbao, Spain

Allied Social Science Associations (ASSA), January 6-8, Chicago, US


Research interests

Macroeconomics, Firm Dynamics, International Trade, Information Frictions

Placement officer

Filippo Ippolito


Jaume Ventura
Alberto Martin
Manuel García-Santana



"Asset Price Bubbles and the Distribution of Firms: A Theory of Economic Expansions with an Application to Spain" (Job Market Paper)
This paper introduces bubbles into a model with firm heterogeneity and firm entry and exit: in a bubbly equilibrium, the price of a firm contains a fundamental component, which represents the net present value of profits, and a bubble component. I show that bubbles act as subsidies to new firms and have the following implications: i) bubbles increase the number of firms, wages, and aggregate output; ii) bubbles lower average productivity and profitability of new firms; iii) along transition dynamics, bubbles subsidize a subset of firms rather than others, aggravating misallocation and therefore depressing aggregate productivity. To the best of my knowledge, this is the first paper to analyze the effects of bubbles on the distribution of firms. The model can be used to discriminate alternative explanations of business cycles, like shocks to productivity or demand, and shocks to financial frictions. I argue that the Spanish economic expansion before the global financial crisis can be well interpreted as a consequence of a bubble boom, and the recession as an outcome of a bubble crash.


Research Paper in Progress

“Asset Price Bubbles and the Growth of Firms”
In this paper, I present a model of firm dynamics with rational bubbles. I show that rational bubble components attached to firms are non-stationary and expected to grow over time, and that this feature distinguish rational bubbles from noisy bubbles which arise from noisy belief about fundamentals. Moreover, I show that the growth of bubble component can be an engine for firm growth: as the bubble component expands over time, the firm would gradually grow out of financial constraint and become less likely to exit. I evaluate the importance of bubble growth using firm-level data and study the implications of bubble on the distribution of firms.