Rational land and housing bubbles in infinite-horizon economies
Résumé
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.
Domaines
Economies et finances| Origine | Fichiers produits par l'(les) auteur(s) |
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