Real indeterminacy and dynamics of asset price bubbles in general equilibrium

Ngoc-Sang Pham, Cuong Le Van and Stefano Bosi

MPRA Paper from University Library of Munich, Germany

Abstract: In a simple infinite-horizon exchange economy with a single consumption good and a financial asset, real indeterminacy and asset price bubble may arise. We show how heterogeneity (in terms of preferences, endowments) and short-sale constraints affect the emergence and the dynamics of asset price bubbles as well as the equilibrium indeterminacy. We also bridge the literature of bubbles in models with infinitely lived agents and that in OLG models.

Keywords: asset price bubble; real indeterminacy; borrowing constraint; intertemporal equilibrium; infinite horizon (search for similar items in EconPapers)
JEL-codes: D5 D9 E4 G12 (search for similar items in EconPapers)
Date: 2019-11-12
New Economics Papers: this item is included in nep-dge, nep-mac and nep-ore
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/96834/1/MPRA_paper_96834.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/104010/1/MPRA_paper_104010.pdf revised version (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 (2022)
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:pra:mprapa:96834

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().