Date of Completion


Embargo Period


Major Advisor

Richard M.H.Suen

Associate Advisor

Stephen L. Ross

Associate Advisor

Kai Zhao

Field of Study



Doctor of Philosophy

Open Access

Open Access


This dissertation examines theoretically the macroeconomic effects of asset bubbles and bank competition. The first two essays study the aggregate impacts of bubbles and crashes by extending the standard rational bubbles model with endogenous labor supply. By explicitly considering the labor choice, the studies generate results that asset bubbles can promote economic expansion as opposed to the contractionary effect predicted by previous studies. In addition, when bubbles crash, the transmission to the real economy is much faster than the economy without labor choice. The third essay discusses the role of bank competition on capital accumulation. Within a dynamic general equilibrium framework with oligopolistic financial intermediaries and asymmetric information between lenders and borrowers, the study provides conditions under which a more competitive banking structure is beneficial to capital accumulation.