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Bosi, Stefano; Seegmuller, Thomas - HAL - 2009

) bubbles can arise. From a normative point of view, monetary policies that are not too expansive, are recommended in order to …

Persistent link: https://www.econbiz.de/10010738685

Growth effect of bubbles in a non-scale endogenous growth model with in-house R&D

Takao, Kizuku - Graduate School of Economics, Osaka University - 2014

This paper provides a theoretical explanation for why the presence of asset bubbles can lead to higher economic growth … firms also enter into the market. Due to an absence of intergenerational altruism, asset bubbles can exist as pyramid … schemes whose value is not backed by fundamental value. The presence of asset bubbles then leads to higher interest rates …

Persistent link: https://www.econbiz.de/10010837100

On rational exuberance.

Bosi, Stefano; Seegmuller, Thomas - Centre d'Économie de la Sorbonne, Université Paris 1 … - 2009

) bubbles can arise. From a normative point of view, monetary policies that are not too expansive, are recommended in order to …

Persistent link: https://www.econbiz.de/10005012503

Equilibrium asset prices and bubbles in a continuous time OLG model

Brito, Paulo - Volkswirtschaftliche Fakultät, … - 2008

asset prices. For a simple distribution, we prove that bubbles may exist, and derive conditions for ruling them out. …

Persistent link: https://www.econbiz.de/10005619429

Political Institutions and Economic Growth

Marsiliani, Laura; Renström, Thomas I - C.E.P.R. Discussion Papers - 2007

We analyze the impact of micro-founded political institutions on economic growth in an overlapping-generations economy, where individuals differ in preferences over a public good (as well as in age). Labour and capital taxes finance the public good and a public input. The benchmark institution...

Persistent link: https://www.econbiz.de/10005504348

Maximum Sustainable Government Debt in the Overlapping Generations Model

Rankin, Neil; Roffia, Barbara - C.E.P.R. Discussion Papers - 1999

The theoretical determinants of maximum sustainable government debt are investigated using Diamond's overlapping-generations model. A level of debt is defined to be 'sustainable' if a steady state with non-degenerate values of economic variables exists. We show that a maximum sustainable level...

Persistent link: https://www.econbiz.de/10005504759

Specialization in a dynamic trade model: An overlapping generations case

Kaneko, Akihiko - In: International Economic Journal 20 (2006) 3, pp. 357-368

We explore a small open economy with overlapping generations to show that demographic structure is an important factor for the determination of a production pattern in the dynamic trade theory. In the representative agent model, Baxter (1992) shows that even if there are two commodities and two...

Persistent link: https://www.econbiz.de/10005511682

Information and Dynamic Adjustment in Life Insurance Markets

Messner, Matthias; Polborn, Mattias K. - University of Western Ontario, Department of Economics - 1999

We analyze an overlapping generations model of voting over ``reform projects''. These resemble investments in that they first require some investment expenditure and later bring a payoff; consequently, older people are more conservative (against reforms) than younger ones. We show that if people...

Persistent link: https://www.econbiz.de/10005515512

Transmission of Demographic Shock Effects from Large to Small Countries : An Overlapping Generations CGE Analysis

Sayan, Serdar; Kenc, Turalay - İktisat Bölümü, Bilkent Üniversitesi - 1998

Persistent link: https://www.econbiz.de/10005515761

TERMS-OF-TRADE AND THE CURRENT ACCOUNT: A TWO-COUNTRY/TWO-SECTOR GROWTH MODEL

Guilló, María Dolores - Instituto Valenciano de Investigaciones Económicas (IVIE) - 1995

This paper examines the equilibrium relation, within the non-specialized area, between the current account and the terms-of-trade in a two-country/sector growth model. Along a convergent eqirilibrium path, this relation can have any sign depending on the trading sectors' relative factor...

Persistent link: https://www.econbiz.de/10005515934