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Rational land and housing bubbles in infinite-horizon economies

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This paper considers rational land and housing bubbles in an infinite-horizon general equilibrium model. Their demands rest on two different grounds: the land is an input to produce while the house may be consumed. Our work differs from the existing literature in two respects. First, dividends on both these long-lived assets are endogenous and their sequences are computed. Second, we introduce and study different concepts of bubbles, including individual and strong bubbles

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  • Stefano Bosi & Cuong Le Van & Ngoc-Sang Pham, 2016. "Rational land and housing bubbles in infinite-horizon economies," Documents de travail du Centre d'Economie de la Sorbonne 16027, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    • Handle: RePEc:mse:cesdoc:16027
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    Cited by:

    1. Stefano Bosi & Carmen Camacho & David Desmarchelier, 2020. "Human capital and welfare," Working Papers halshs-02482543, HAL.
    2. Stefano Bosi & Carmen Camacho & David Desmarchelier, 2020. "Human capital and welfare," PSE Working Papers halshs-02482543, HAL.

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    More about this item

    Keywords

    infinite horizon; general equilibrium; land bubble; housing bubble;
    All these keywords.

    JEL classification:

    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • G13 - Financial Economics - - General Financial Markets - - - Contingent Pricing; Futures Pricing

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