Asset Bubbles in an Overlapping Generations Model with Endogenous Labor Supply

Shi, Lisi and Suen, Richard M. H. (2013): Asset Bubbles in an Overlapping Generations Model with Endogenous Labor Supply.

Abstract

This paper examines the effects of asset bubbles in an overlapping generations model with endogenous labor supply. We derive a set of conditions under which asset bubbles will lead to an expansion in steady-state capital, investment, employment and output. We also provide a specific numerical example to illustrate these results.

• Item Type: MPRA Paper
• Language: English
• Keywords: Asset Bubbles, Overlapping Generations, Endogenous Labor.
• Subjects: E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E22 - Investment ; Capital ; Intangible Capital ; Capacity; E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E44 - Financial Markets and the Macroeconomy

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