Bosi, Stefano; Van, Cuong Le; Pham, Ngoc-Sang - Centre d'Études des Politiques Économiques (EPEE), … - 2014
and the production functions are not time invariant. Second, we call by physical capital bubble a situation in which the … fundamental value of physical capital is lower than its market price. We show that there is a physical capital bubble if and only … physical capital bubble and the fact that the present value of output is finite. Last, with linear technologies, every …