Bubbles, collateral and monetary equilibrium

Detalhes bibliográficos
Autor(a) principal: Torres-Martínez, Juan Pablo
Data de Publicação: 2006
Outros Autores: Araújo, Aloísio Pessoa de, Pascoa, Mario Rui
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Institucional do FGV (FGV Repositório Digital)
Texto Completo: http://hdl.handle.net/10438/709
Resumo: Consider an economy where infinite-lived agents trade assets collateralized by durable goods. We obtain results that rule out bubbles when the additional endowments of durable goods are uniformly bounded away from zero, regardless of whether the asset’s net supply is positive or zero. However, bubbles may occur, even for state-price processes that generate finite present value of aggregate wealth. First, under complete markets, if the net supply is being endogenously reduced to zero as a result of collateral repossession. Secondly, under incomplete markets, for a persistent positive net supply, under the general conditions guaranteeing existence of equilibrium. Examples of monetary equilibria are provided.
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spelling Torres-Martínez, Juan PabloAraújo, Aloísio Pessoa dePascoa, Mario RuiEscolas::EPGEFGV2008-05-13T15:31:12Z2008-05-13T15:31:12Z2006-04-010104-8910http://hdl.handle.net/10438/709Consider an economy where infinite-lived agents trade assets collateralized by durable goods. We obtain results that rule out bubbles when the additional endowments of durable goods are uniformly bounded away from zero, regardless of whether the asset’s net supply is positive or zero. However, bubbles may occur, even for state-price processes that generate finite present value of aggregate wealth. First, under complete markets, if the net supply is being endogenously reduced to zero as a result of collateral repossession. Secondly, under incomplete markets, for a persistent positive net supply, under the general conditions guaranteeing existence of equilibrium. Examples of monetary equilibria are provided.engEscola de Pós-Graduação em Economia da FGVEnsaios Econômicos;614Monetary equilibriumBubblesDefaultCollateralDurable goodsEconomiaEconomiaBubbles, collateral and monetary equilibriuminfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articlereponame:Repositório Institucional do FGV (FGV Repositório Digital)instname:Fundação Getulio Vargas (FGV)instacron:FGVinfo:eu-repo/semantics/openAccessORIGINAL2059.pdfapplication/pdf579158https://repositorio.fgv.br/bitstreams/a0a15c1a-61b1-4d10-9069-25672bb8c933/downloadfe09faeae03fd54722a6c08369f69579MD51TEXT2059.pdf.txt2059.pdf.txtExtracted texttext/plain105700https://repositorio.fgv.br/bitstreams/cd13c6cc-fde2-482a-a12b-32993f94f9ab/download5c0b506b5fae30373d42ef93fa8eae02MD56THUMBNAIL2059.pdf.jpg2059.pdf.jpgGenerated Thumbnailimage/jpeg3227https://repositorio.fgv.br/bitstreams/878e0277-3203-474e-8665-d5198ee88945/download7549060b8b3073d8ee99f43c9a048d48MD5710438/7092023-11-09 20:21:59.676open.accessoai:repositorio.fgv.br:10438/709https://repositorio.fgv.brRepositório InstitucionalPRIhttp://bibliotecadigital.fgv.br/dspace-oai/requestopendoar:39742023-11-09T20:21:59Repositório Institucional do FGV (FGV Repositório Digital) - Fundação Getulio Vargas (FGV)false
dc.title.eng.fl_str_mv Bubbles, collateral and monetary equilibrium
title Bubbles, collateral and monetary equilibrium
spellingShingle Bubbles, collateral and monetary equilibrium
Torres-Martínez, Juan Pablo
Monetary equilibrium
Bubbles
Default
Collateral
Durable goods
Economia
Economia
title_short Bubbles, collateral and monetary equilibrium
title_full Bubbles, collateral and monetary equilibrium
title_fullStr Bubbles, collateral and monetary equilibrium
title_full_unstemmed Bubbles, collateral and monetary equilibrium
title_sort Bubbles, collateral and monetary equilibrium
author Torres-Martínez, Juan Pablo
author_facet Torres-Martínez, Juan Pablo
Araújo, Aloísio Pessoa de
Pascoa, Mario Rui
author_role author
author2 Araújo, Aloísio Pessoa de
Pascoa, Mario Rui
author2_role author
author
dc.contributor.unidadefgv.por.fl_str_mv Escolas::EPGE
dc.contributor.affiliation.none.fl_str_mv FGV
dc.contributor.author.fl_str_mv Torres-Martínez, Juan Pablo
Araújo, Aloísio Pessoa de
Pascoa, Mario Rui
dc.subject.por.fl_str_mv Monetary equilibrium
Bubbles
Default
Collateral
Durable goods
topic Monetary equilibrium
Bubbles
Default
Collateral
Durable goods
Economia
Economia
dc.subject.area.por.fl_str_mv Economia
dc.subject.bibliodata.por.fl_str_mv Economia
description Consider an economy where infinite-lived agents trade assets collateralized by durable goods. We obtain results that rule out bubbles when the additional endowments of durable goods are uniformly bounded away from zero, regardless of whether the asset’s net supply is positive or zero. However, bubbles may occur, even for state-price processes that generate finite present value of aggregate wealth. First, under complete markets, if the net supply is being endogenously reduced to zero as a result of collateral repossession. Secondly, under incomplete markets, for a persistent positive net supply, under the general conditions guaranteeing existence of equilibrium. Examples of monetary equilibria are provided.
publishDate 2006
dc.date.issued.fl_str_mv 2006-04-01
dc.date.accessioned.fl_str_mv 2008-05-13T15:31:12Z
dc.date.available.fl_str_mv 2008-05-13T15:31:12Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
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dc.identifier.uri.fl_str_mv http://hdl.handle.net/10438/709
dc.identifier.issn.none.fl_str_mv 0104-8910
identifier_str_mv 0104-8910
url http://hdl.handle.net/10438/709
dc.language.iso.fl_str_mv eng
language eng
dc.relation.ispartofseries.por.fl_str_mv Ensaios Econômicos;614
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.publisher.none.fl_str_mv Escola de Pós-Graduação em Economia da FGV
publisher.none.fl_str_mv Escola de Pós-Graduação em Economia da FGV
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