Real indeterminacy and dynamics of asset price bubbles in general equilibrium
Article dans une revue: We show that both real indeterminacy and asset price bubble may appear in an infinite-horizon exchange economy with infinitely lived agents and an imperfect financial market. We explain how the asset structure and heterogeneity (in terms of preferences and endowments) affect the existence and the dynamics of asset price bubbles as well as the equilibrium indeterminacy. Moreover, this paper bridges the literature on bubbles in models with infinitely lived agents and that in overlapping generations models.
Auteur(s)
Stefano Bosi, Cuong Le Van, Ngoc-Sang Pham
Revue
- Journal of Mathematical Economics
Date de publication
- 2022
Mots-clés JEL
Mots-clés
- Intertemporal equilibrium
- Borrowing constraint
- Real indeterminacy
- Asset price bubble
Pages
- 102651
URL de la notice HAL
Version
- 2
Volume
- 100