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Article
Long-lived collateralized assets and bubbles
Journal of Mathematical Economics (2011)
  • Aloisio Araujo, IMPA and EPGE/FGV, Brazil
  • Mário Páscoa, New University of Lisbon
  • Juan Pablo Torres-Martínez, University of Chile
Abstract
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.
Keywords
  • Collateralized assets,
  • asset pricing bubbles,
  • equilibrium
Disciplines
Publication Date
2011
Citation Information
Araujo, A., M. Páscoa, and J. P. Torres-Martínez (2011): "Long-lived collateralized assets and bubbles," Journal of Mathematical Economics, volume 47, pages 260-271.