Long-lived collateralized assets and bubbles
Mario Pascoa and
Juan Pablo Torres-Martinez ()
No 542, Textos para discussão from Department of Economics PUC-Rio (Brazil)
When infinite lived agents trade long-lived assets secured by durable goods, equilibrium exists without any uniform impatience requirements or additional debt constraints. Asset pricing bubbles are absent when the new endowments of durable goods are uniformly bounded away from zero. Otherwise, bubbles may occur, even for assets in persistently positive net supply and for deflators that yield finite present values of aggregate wealth.
Keywords: Existence of equilibrium; Asset pricing bubbles; Collateralized assets. (search for similar items in EconPapers)
JEL-codes: D50 D52 (search for similar items in EconPapers)
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Journal Article: Long-lived collateralized assets and bubbles (2011)
Working Paper: Long-lived collateralized assets and bubbles (2010)
Working Paper: Long-lived Collateralized Assets and Bubbles (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:rio:texdis:542
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