Temporary bubbles

• 成果类型: Article
• 署名作者: Michel, P; Wigniolle, B
• 署名单位: Aix-Marseille Universite; Universite Marie et Louis Pasteur
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/S0022-0531(03)00063-2
• 发表日期: 2003
• 页码: 173-183
• 关键词: overlapping generations model; bubbles; cash-in-advance constraint

摘要

This article studies the dynamics of an overlapping generations model with capital, money and cash-in-advance constraints. The economy can exhibit two different regimes. In the first one, the cash-in-advance constraint is binding and money is a dominated asset. In the second one, the constraint is strictly satisfied and money has the same return as capital. When the second regime holds on a finite number of periods, we say that the economy experiences a temporary bubble. We prove that temporary bubbles can exist in an economy, which would experience under-accumulation without money. We also show that cyclical bubbles may occur. (C) 2003 Elsevier Inc. All rights reserved.