Gai, PrasannaTrivedi, Kamakshya2015-12-070307-3378http://hdl.handle.net/1885/23139This note presents a simple model that nests the 'excess liquidity' and 'savings glut' hypotheses of the debate on the recent asset price boom. It clarifies the notion of investors' 'search for yield' and shows how financial frictions influence asset price dynamics.Keywords: financial market; hypothesis testing; investment; numerical model; price dynamics Funding externalities; Search for yield200910.1111/j.1467-8586.2008.00293.x2016-02-24