We study the dynamic properties of growth rates in an overlapping generations economy with credit market imperfections, constructing a Schumpeterian growth model. The analysis demonstrates that: (i) two steady-state equilibria arise as is usual in overlapping generations models with outside...

In this paper, we study the existence of asset bubbles in an overlapping generations economy `a la Tirole (1985) with borrowing constraints. Deriving a condition for the existence of equilibrium paths with bubbles, we demonstrate that (i) a monetary steady state (a steady state with bubbles) is...