Long-lived collateralized assets and bubbles

Aloisio Araujo, Mario Pascoa and Juan Pablo Torres-Martinez

No 542, Textos para discussão from Department of Economics PUC-Rio (Brazil)

Abstract: When infinite lived agents trade long-lived assets secured by durable goods, equilibrium exists without any uniform impatience requirements or additional debt constraints. Asset pricing bubbles are absent when the new endowments of durable goods are uniformly bounded away from zero. Otherwise, bubbles may occur, even for assets in persistently positive net supply and for deflators that yield finite present values of aggregate wealth.

Keywords: Existence of equilibrium; Asset pricing bubbles; Collateralized assets. (search for similar items in EconPapers)
JEL-codes: D50 D52 (search for similar items in EconPapers)
Pages: 30p
Date: 2007-03
New Economics Papers: this item is included in nep-cba
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.econ.puc-rio.br/uploads/adm/trabalhos/files/td542.pdf (application/pdf)

Related works:
Journal Article: Long-lived collateralized assets and bubbles (2011)
Working Paper: Long-lived collateralized assets and bubbles (2010)
Working Paper: Long-lived Collateralized Assets and Bubbles (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rio:texdis:542

Access Statistics for this paper

More papers in Textos para discussão from Department of Economics PUC-Rio (Brazil) Contact information at EDIRC.
Bibliographic data for series maintained by ().