Real indeterminacy and dynamics of asset price bubbles in general equilibrium

Stefano Bosi (), Cuong Le Van () and Ngoc-Sang Pham
Additional contact information
Stefano Bosi: EPEE - Centre d'Etudes des Politiques Economiques - UEVE - Université d'Évry-Val-d'Essonne - Université Paris-Saclay, Université Paris-Saclay
Cuong Le Van: CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, IPAG Business School, TIMAS - Institute of Mathematics and Applied Science, CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique

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

Abstract: We show that both real indeterminacy and asset price bubble may appear in an infinite-horizon exchange economy with infinitely lived agents and an imperfect financial market. We explain how the asset structure and heterogeneity (in terms of preferences and endowments) affect the existence and the dynamics of asset price bubbles as well as the equilibrium indeterminacy. Moreover, this paper bridges the literature on bubbles in models with infinitely lived agents and that in overlapping generations models.

Keywords: intertemporal equilibrium; borrowing constraint; real indeterminacy; asset price bubble (search for similar items in EconPapers)
Date: 2022-02
New Economics Papers: this item is included in nep-dge and nep-mac
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-02993656v2
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Published in Journal of Mathematical Economics, 2022, 100, ⟨10.1016/j.jmateco.2022.102651⟩

Downloads: (external link)
https://shs.hal.science/halshs-02993656v2/document (application/pdf)

Related works:
Journal Article: Real indeterminacy and dynamics of asset price bubbles in general equilibrium (2022)
Working Paper: Real indeterminacy and dynamics of asset price bubbles in general equilibrium (2022)
Working Paper: Real indeterminacy and dynamics of asset price bubbles in general equilibrium (2022)
Working Paper: Real indeterminacy and dynamics of asset price bubbles in general equilibrium (2019)
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-02993656

DOI: 10.1016/j.jmateco.2022.102651

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 ().