Long-lived collateralized assets and bubbles

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.

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Year of publication:	2007
Authors:	Araujo, Aloisio ; Páscoa, Mário R. ; Torres-Martínez, Juan Pablo
Publisher:	Rio de Janeiro : Pontifícia Universidade Católica do Rio de Janeiro (PUC-Rio), Departamento de Economia
Subject:	Kapitalmarkttheorie \| Existence of equilibrium \| Asset pricing bubbles \| Collateralized assets.

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Series:	Texto para discussão ; 542
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	527280127 [GVK] hdl:10419/176025 [Handle] RePEc:rio:texdis:542 [RePEc]
Classification:	D50 - General Equilibrium and Disequilibrium. General ; D52 - Incomplete Markets
Source:	EconStor

Persistent link: https://www.econbiz.de/10011807366