EconPapers    
Economics at your fingertips  
 

On existence and bubbles of Ramsey equilibrium with borrowing constraints

Robert Becker, Stefano Bosi (), Cuong Le van () and Thomas Seegmuller ()
Additional contact information
Stefano Bosi: EPEE - Centre d'Etudes des Politiques Economiques - UEVE - Université d'Évry-Val-d'Essonne

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: We study the existence of equilibrium and rational bubbles in a Ramsey model with heterogeneous agents, borrowing constraints and endogenous labor. Applying a Kakutani's fixed-point theorem, we prove the existence of equilibrium in a time-truncated bounded economy. A common argument shows this solution to be an equilibrium for any unbounded economy with the same fundamentals. Taking the limit of a sequence of truncated economies, we eventually obtain the existence of equilibrium in the Ramsey model. In the second part of the paper, we address the issue of rational bubbles and we prove that they never occur in a productive economy à la Ramsey.

Keywords: Existence of equilibrium; borrowing constraint; endogenous labor; heterogeneous agents; Ramsey model; bubbles; bulles; Equilibre; travail endogène; contraintes d'emprunt; modèle de Ramsey; agents hétérogènes (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge and nep-mic
Date: 2014-03
Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-01020635
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17) Track citations by RSS feed

Published in Documents de travail du Centre d'Economie de la Sorbonne 2014.40 - ISSN : 1955-611X. 2014

Downloads: (external link)
https://halshs.archives-ouvertes.fr/halshs-01020635/document (application/pdf)

Related works:
Journal Article: On existence and bubbles of Ramsey equilibrium with borrowing constraints (2015) Downloads
Working Paper: On existence and bubbles of Ramsey equilibrium with borrowing constraints (2015)
Working Paper: On existence and bubbles of Ramsey equilibrium with borrowing constraints (2014) Downloads
Working Paper: On existence and bubbles of Ramsey equilibrium with borrowing constraints (2014) Downloads
Working Paper: On Existence and Bubbles of Ramsey Equilibrium with Borrowing Constraints (2013) Downloads
Working Paper: On Existence and Bubbles of Ramsey Equilibrium with Borrowing Constraints (2012) Downloads
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:hal:cesptp:halshs-01020635

Access Statistics for this paper

More papers in Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL
Bibliographic data for series maintained by CCSD ().

 
Page updated 2019-04-19
Handle: RePEc:hal:cesptp:halshs-01020635