Revistas Académicas WoS

Long-lived collateralized assets and bubbles

When infinite-lived agents trade long-lived assets secured by durable goods, equilibrium exists without any additional debt constraints or uniform impatience conditions on agents’ characteristics. Also, price bubbles are absent when physical endowments are uniformly bounded away from zero.

https://www.sciencedirect.com/science/article/abs/pii/S0304406811000127

Journal of Mathematical Economics, Vol. 47, pp. 260 - 271, 2011
Autor(es): Araujo Aloisio, Páscoa Mário, Torres-Martínez Juan Pablo