Rational land and housing bubbles in infinite-horizon economies
Book section: This paper considers rational land and housing bubbles in an infinite-horizon general equilibrium model. Their demands rest on two different grounds: the land is an input to produce while the house may be consumed. Our work differs from the existing literature in two respects. First, dividends on both these long-lived assets are endogenous and their sequences are computed. Second, we introduce and study different concepts of bubbles, including individual and strong bubbles.
Author(s)
Cuong Le Van, Stefano Bosi, Ngoc-Sang Pham
Publisher(s)
- Springer-Verlag
Scientific editor(s)
- K. Nishimura, A. Venditti and N. Yannelis
Collection
- Studies in Economic Theory
Title of the work
- Sunspots and Non-Linear Dynamics – Essays in honor of Jean-Michel Grandmont
Date of publication
- 2017
Keywords JEL
Keywords
- Land bubble
- General equilibrium
- Infinite horizon
- Housing bubble
Pages
- 203-230
URL of the HAL notice
Version
- 1