Long-lived Collateralized Assets and Bubbles
Mario Pascoa and
Juan Pablo Torres-Martinez ()
Working Papers from University of Chile, Department of Economics
When infinite-lived agents trade long-lived assets secured by durable goods, equilibrium exists without any additional debt constraints or uniform impatience conditions on agents' characteristics. Also, regardless of whether assets' net supply is positive or zero, price bubbles are absent when physical endowments are uniformly bounded away from zero. Otherwise, bubbles may occur, even for assets in persistently positive net supply and for deflators yielding finite present values of aggregate wealth.
Keywords: Collateralized assets; Existence of equilibrium; Asset pricing bubbles. (search for similar items in EconPapers)
JEL-codes: D50 D52 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed
Downloads: (external link)
http://www.econ.uchile.cl/uploads/publicacion/2417 ... a5a-4fe13811d8a3.pdf (application/pdf)
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 (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:udc:wpaper:wp284
Access Statistics for this paper
More papers in Working Papers from University of Chile, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Mohit Karnani ().