Intertemporal equilibrium with heterogeneous agents, endogenous dividends and collateral constraints
Journal article: We build a dynamic general equilibrium model with heterogeneous producers and financial frictions (collateral constraints and incompleteness). First, we provide a characterization to check whether a sequence is an equilibrium or not. Second, we study the effects of financial imperfections on output and land prices. Third, we develop a theory of valuation of land by introducing the notion of endogenous land dividends (or yields) and different concepts of land-price bubbles. Some examples of bubbles are provided in economies with and without short-sales.
Author(s)
Stefano Bosi, Cuong Le Van, Ngoc-Sang Pham
Journal
- Journal of Mathematical Economics
Date of publication
- 2018
Keywords JEL
Keywords
- Infinite-horizon
- General equilibrium
- Collateral constraint
- Incomplete markets
- Asset valuation
- Rational bubbles
Pages
- 1-20
URL of the HAL notice
Version
- 1
Volume
- 76