Complex stock price dynamics under Max Weber’s spirit of capitalism hypothesis
Marco Airaudo ()
Additional contact information
Marco Airaudo: Drexel University
Economic Theory, 2017, vol. 64, issue 1, 47-73
Abstract We introduce Max Weber’s spirit of capitalism hypothesis into a benchmark Lucas’ tree asset pricing model by assuming that economic agents derive direct utility from wealth. We prove the existence of perfect foresight equilibria where the price-dividend ratio displays explosive rational bubble solutions, endogenous periodic cycles and chaotic dynamics.
Keywords: Asset pricing; Bubbles; Endogenous cycles; Chaotic dynamics; Status; Wealth preferences; Spirit of capitalism (search for similar items in EconPapers)
JEL-codes: E32 G12 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s00199-016-0969-0 Abstract (text/html)
Access to the full text of the articles in this series is restricted.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:spr:joecth:v:64:y:2017:i:1:d:10.1007_s00199-016-0969-0
Ordering information: This journal article can be ordered from
http://www.springer. ... eory/journal/199/PS2
Access Statistics for this article
Economic Theory is currently edited by Nichoals Yanneils
More articles in Economic Theory from Springer, Society for the Advancement of Economic Theory (SAET) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla ().