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Financial bubbles and capital accumulation in altruistic economies

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  • Bosi, Stefano
  • Ha-Huy, Thai
  • Le Van, Cuong
  • Pham, Cao-Tung
  • Pham, Ngoc-Sang

Abstract

We consider an overlapping generations model à la Diamond (1965) with two additional ingredients: altruism and an asset (or land) bringing non-stationary positive dividends (or fruits). We study the global dynamics of capital stocks and asset values as well as the interplay between them. Asset price bubbles are also investigated.

Suggested Citation

  • Bosi, Stefano & Ha-Huy, Thai & Le Van, Cuong & Pham, Cao-Tung & Pham, Ngoc-Sang, 2018. "Financial bubbles and capital accumulation in altruistic economies," MPRA Paper 84429, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:84429
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Bosi, Stefano & Van, Cuong Le & Pham, Ngoc-Sang, 2018. "Intertemporal equilibrium with heterogeneous agents, endogenous dividends and collateral constraints," Journal of Mathematical Economics, Elsevier, vol. 76(C), pages 1-20.
    2. Lise Clain-Chamosset-Yvrard & Thomas Seegmuller, 2018. "Bubble on real estate: The role of altruism and fiscal policy," Working Papers halshs-01885932, HAL.
    3. Bosi, Stefano & Le Van, Cuong & Pham, Ngoc-Sang, 2022. "Real indeterminacy and dynamics of asset price bubbles in general equilibrium," Journal of Mathematical Economics, Elsevier, vol. 100(C).
    4. Lise Clain-Chamosset-Yvrard & Thomas Seegmuller, 2018. "Bubble on Real Estate: The Role of Altruism and Fiscal Policy," Working Papers halshs-01880937, HAL.
    5. Lise Clain-Chamosset-Yvrard & Xavier Raurich & Thomas Seegmuller, 2024. "Rational bubbles on assets with a fundamental value," AMSE Working Papers 2408, Aix-Marseille School of Economics, France.
    6. Stefano Bosi & Thai Ha‐Huy & Cao‐Tung Pham & Ngoc‐Sang Pham, 2022. "Ascendant altruism and asset price bubbles," International Journal of Economic Theory, The International Society for Economic Theory, vol. 18(4), pages 532-551, December.
    7. Stefano Bosi & Thai Ha-Huy & Ngoc-Sang Pham, 2019. "Rational bubbles in altruistic economies: when Tirole meets Ramsey," Economics Bulletin, AccessEcon, vol. 39(2), pages 816-829.

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    More about this item

    Keywords

    Forward altruism; overlapping generations; capital accumulation; financial asset; positive dividends; rational bubbles;
    All these keywords.

    JEL classification:

    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
    • D53 - Microeconomics - - General Equilibrium and Disequilibrium - - - Financial Markets
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates

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