Munich Personal RePEc Archive

Real indeterminacy and dynamics of asset price bubbles in general equilibrium

Pham, Ngoc-Sang and Le Van, Cuong and Bosi, Stefano (2019): Real indeterminacy and dynamics of asset price bubbles in general equilibrium.

WarningThere is a more recent version of this item available.
[img]
Preview
PDF
MPRA_paper_96834.pdf

Download (452kB) | Preview

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.

Available Versions of this Item

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.