Asset Bubbles and Overlapping Generations
نویسنده
چکیده
منابع مشابه
Financial bubbles and capital accumulation in altruistic economies
We consider an overlapping generations model à la Diamond (1965) with two additional ingredients: altruism and an asset (or land) bringing non-stationary positive dividends (or fruits). We study the global dynamics of capital stocks and asset values as well as the interplay between them. Asset price bubbles are also investigated.
متن کاملA Note on the Crowd-in Effect of Asset Bubbles in the Perpetual Youth Model Authors’ List
A perpetual youth overlapping generations model is presented in which the presence of financial frictions can create the crowd-in effect of asset bubbles that promotes capital accumulation. The existence of asset bubbles increases the equilibrium interest rate. Although the increased interest rate excludes less productive agents from production activity, these agents benefit from the liquidity ...
متن کاملLearning by Doing: Asset Price Bubble Formation with Heterogeneous Agents
In this paper we study the accruement and decay of asset price bubbles under the assumption that young agents behave boundedly rationally when rst entering the market and then gain more and more experience when growing older, nally reaching a state of perfect rational behavior. We set up an overlapping generations model where agents form their beliefs about the payo of a risky asset by combinin...
متن کاملAsset Pricing Bubble Formation with Heterogenous Agents
In this paper we study the accruement and decay of asset pricing bubbles under the assumption that young agents behave boundedly rational when rst entering the market and then gain more and more experience when growing older, nally reaching a state of perfect rational behavior. Therefore we set up an overlapping generations model where agents form their beliefs about the payo of a risky asset b...
متن کاملTemporary bubbles in an economy with under-accumulation
This paper studies the equilibrium dynamics of an overlapping generations model with capital, money and cash-in-advance constraints. At each date the economy can experience two different regimes. In the first one the cash-inadvance constraint is binding and money is a dominated asset. In the second one, the constraint is strictly satisfied and money has the same return as capital. When the seco...
متن کامل