Asset bubble and endogenous labor supply: a clarification
Kathia Bahloul Zekkari () and
Thomas Seegmuller ()
Additional contact information
Kathia Bahloul Zekkari: Aix-Marseille Univ, CNRS, AMSE, Marseille, France, https://www.amse-aixmarseille.fr/en/members/bahloul
Thomas Seegmuller: Aix-Marseille Univ, CNRS, AMSE, Marseille, France, https://www.amse-aixmarseille.fr/en/members/seegmuller
No 2026, AMSE Working Papers from Aix-Marseille School of Economics, France
This paper analyzes the link between asset bubbles, endogenous labor and capital. The question is whether endogenous labor, per se, can explain a crowding-in effect of the bubble, i.e. higher levels of capital and labor. With respect to the existing literature, our contribution is twofold. First, we explicitly and theoretically derive the conditions to have a crowding-in effect of the bubble. Second, the utility function we consider allows us to show that this result does not require an arbitrarily high elasticity of intertemporal substitution in consumption. Our result still holds for a unit value of this elascticity (Cobb-Douglas utility).
Keywords: asset bubbles; crowding-in effect; endogenous labor; overlapping generations (search for similar items in EconPapers)
JEL-codes: E22 E44 J22 (search for similar items in EconPapers)
Pages: 11 pages
New Economics Papers: this item is included in nep-dge, nep-mac and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
https://www.amse-aixmarseille.fr/sites/default/fil ... /wp_2020_-_nr_26.pdf (application/pdf)
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:aim:wpaimx:2026
Access Statistics for this paper
More papers in AMSE Working Papers from Aix-Marseille School of Economics, France AMU-AMSE - 5-9 Boulevard Maurice Bourdet, CS 50498 - 13205 Marseille Cedex 1. Contact information at EDIRC.
Bibliographic data for series maintained by Gregory Cornu ().