Intertemporal equilibrium with financial asset and physical capital

Le van, Cuong; Pham, Ngoc-Sang

Intertemporal equilibrium with financial asset and physical capital

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

Abstract: We build an infinite-horizon dynamic deterministic general equilibrium model with imperfect markets (because of borrowing constraints), in which heterogeneous agents invest in capital or/and financial asset, and consume. There is a representative firm who maximizes its profit. Firstly, the existence of intertemporal equilibrium is proved even if aggregate capital is not uniformly bounded. Secondly, we study the interaction between the financial market and the productive sector. We also explore the nature of physical capital bubble and financial asset bubble as well.

Keywords: infinite horizon; intertemporal equilibrium; financial friction; productivity; efficiency; fluctuation; bubbles (search for similar items in EconPapers)
Date: 2014-08
New Economics Papers: this item is included in nep-dge
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Published in 2014

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Persistent link: https://EconPapers.repec.org/RePEc:hal:cesptp:halshs-01147470

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