Make a bubble, take a free lunch, break a bank

Standard economics is known to be incapable of integrating the real and the monetary sphere. The ultimate reason is that the whole theoretical edifice is built upon a set of behavioral axioms. Therefore, the formal starting point is moved to structural axioms. This makes it possible to formally track the complete process of value creation and destruction in the asset market and its consequences for the household and business sector. From the set of structural axioms emerge the well-known phenomena of a bubble from free lunches through appreciation to defaults due to a lack of potential next buyers.

MoreLess

Year of publication:	2012-12-01
Authors:	Kakarot-Handtke, Egmont
Institutions:	Volkswirtschaftliche Fakultät, Ludwig-Maximilians-Universität München
Subject:	new framework of concepts \| structure-centric \| axiom set \| profit \| rate of interest \| liquidity preference \| rentier \| primary market \| secondary market \| parrot economics \| theory of value \| valuation price \| appreciation \| depreciation \| net worth \| debt/income ratio

freely available

Full text |

More access options

Check Google Scholar

In German libraries (KVK)

I need help

More details

Extent:	application/pdf
Series:	MPRA Paper.
Type of publication:	Book / Working Paper
Classification:	E43 - Determination of Interest Rates; Term Structure Interest Rates ; E21 - Consumption; Saving ; E10 - General Aggregative Models. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011111041