EconPapers    
Economics at your fingertips  
 

Asset bubble and endogenous labor supply: a clarification

Kathia Zekkari () and Thomas Seegmuller ()
Additional contact information
Kathia Zekkari: AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique - AMU - Aix Marseille Université
Thomas Seegmuller: AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique - AMU - Aix Marseille Université

Working Papers from HAL

Abstract: 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)
Date: 2020-07-02
New Economics Papers: this item is included in nep-dge and nep-upt
Note: View the original document on HAL open archive server: https://hal-amu.archives-ouvertes.fr/hal-02894741
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://hal-amu.archives-ouvertes.fr/hal-02894741/document (application/pdf)

Related works:
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:wpaper:hal-02894741

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().

 
Page updated 2020-12-14
Handle: RePEc:hal:wpaper:hal-02894741