Capital gains

Detalhes bibliográficos
Autor(a) principal: Conraria, Luís Aguiar
Data de Publicação: 2006
Outros Autores: Shell, Karl
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/1822/6842
Resumo: We analyze a simple overlapping-generations model with two capital goods. The dynamical system is defined by savings behavior and short-run perfect-foresight asset-market clearing. Because lifetimes are finite, there is no transversality condition. If there is a bubble in asset pricing, it will burst in finite time: expectations will eventually be frustrated, but this might take several generations. This raises the question of whether (infinite) long-run perfect foresight is a reasonable assumption for overlapping-generations economies and, hence, whether bursting bubbles can occur in equilibrium.
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spelling Capital gainsBubblesCapital gainsHeterogeneous capitalIrreversible investmentOverlapping generationsTobin's qWe analyze a simple overlapping-generations model with two capital goods. The dynamical system is defined by savings behavior and short-run perfect-foresight asset-market clearing. Because lifetimes are finite, there is no transversality condition. If there is a bubble in asset pricing, it will burst in finite time: expectations will eventually be frustrated, but this might take several generations. This raises the question of whether (infinite) long-run perfect foresight is a reasonable assumption for overlapping-generations economies and, hence, whether bursting bubbles can occur in equilibrium.WileyUniversidade do MinhoConraria, Luís AguiarShell, Karl2006-092006-09-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/1822/6842eng"International Journal of Economic Theory". ISSN 1742-7355. 2:3-4 (Sep. 2006) 331-349.1742-7355http://www.blackwell-synergy.com/loi/IJETinfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-07-21T12:24:16Zoai:repositorium.sdum.uminho.pt:1822/6842Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T19:18:15.681470Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv Capital gains
title Capital gains
spellingShingle Capital gains
Conraria, Luís Aguiar
Bubbles
Capital gains
Heterogeneous capital
Irreversible investment
Overlapping generations
Tobin's q
title_short Capital gains
title_full Capital gains
title_fullStr Capital gains
title_full_unstemmed Capital gains
title_sort Capital gains
author Conraria, Luís Aguiar
author_facet Conraria, Luís Aguiar
Shell, Karl
author_role author
author2 Shell, Karl
author2_role author
dc.contributor.none.fl_str_mv Universidade do Minho
dc.contributor.author.fl_str_mv Conraria, Luís Aguiar
Shell, Karl
dc.subject.por.fl_str_mv Bubbles
Capital gains
Heterogeneous capital
Irreversible investment
Overlapping generations
Tobin's q
topic Bubbles
Capital gains
Heterogeneous capital
Irreversible investment
Overlapping generations
Tobin's q
description We analyze a simple overlapping-generations model with two capital goods. The dynamical system is defined by savings behavior and short-run perfect-foresight asset-market clearing. Because lifetimes are finite, there is no transversality condition. If there is a bubble in asset pricing, it will burst in finite time: expectations will eventually be frustrated, but this might take several generations. This raises the question of whether (infinite) long-run perfect foresight is a reasonable assumption for overlapping-generations economies and, hence, whether bursting bubbles can occur in equilibrium.
publishDate 2006
dc.date.none.fl_str_mv 2006-09
2006-09-01T00:00:00Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/1822/6842
url http://hdl.handle.net/1822/6842
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv "International Journal of Economic Theory". ISSN 1742-7355. 2:3-4 (Sep. 2006) 331-349.
1742-7355
http://www.blackwell-synergy.com/loi/IJET
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Wiley
publisher.none.fl_str_mv Wiley
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron:RCAAP
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instacron_str RCAAP
institution RCAAP
reponame_str Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
collection Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
repository.name.fl_str_mv Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
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