Intertemporal equilibrium with financial asset and physical capital

Article dans une revue: We build an infinite-horizon dynamic deterministic general equilibrium model with imperfect markets (borrowing constraints), in which heterogeneous agents invest in capital or/and financial asset and consume. There is a representative firm which maximizes its profit. Firstly, the existence of intertemporal equilibrium is proved even if aggregate capital is not uniformly bounded. Secondly, we study the interaction between the financial market and the productive sector. We also explore the nature of physical capital bubble and financial asset bubble as well.

Auteur(s)

Cuong Le Van, Ngoc-Sang Pham

Revue
  • Economic Theory
Date de publication
  • 2016
Mots-clés
  • Financial bubbles
  • Efficiency
  • Fluctuation
  • Physical bubbles
  • Infinite horizon
  • Intertemporal equilibrium
  • Financial friction
  • Productivité
Pages
  • 155-199
Version
  • 1
Volume
  • 62