Economic Growth with Bubbles

Alberto Martin

No 788, 2010 Meeting Papers from Society for Economic Dynamics

Abstract: This paper presents a stylized model of economic growth with bubbles. This model views asset price bubbles as a market-generated device to moderate the effects of frictions in financial markets, improving the allocation of investments and raising the capital stock and welfare. It shows that, contrary to conventional wisdom, bubbles can arise even if all investments in the economy are dynamically efficient.

Date: 2010
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Citations: View citations in EconPapers (19)

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Related works:
Working Paper: Economic Growth with Bubbles (2015)
Journal Article: Economic Growth with Bubbles (2012)
Working Paper: Economic growth with bubbles (2011)
Working Paper: Economic Growth with Bubbles (2010)
Working Paper: Economic Growth with Bubbles (2010)
Working Paper: Economic Growth with Bubbles (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:red:sed010:788

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