Please use this identifier to cite or link to this item:
http://hdl.handle.net/2445/194436
Title: | Income distribution by age group and productive bubbles |
Author: | Raurich, Xavier Seegmuller, Thomas |
Keywords: | Societats d'inversió Serveis financers Especulació Mutual funds Financial services industry Speculation |
Issue Date: | 1-Apr-2022 |
Publisher: | Cambridge University Press |
Abstract: | The aim of this paper is to study the role of the distribution of income by age group on the existence of speculative bubbles. A crucial question is whether this distribution may promote a bubble associated to a larger level of capital, that is a productive bubble. We address these issues in an overlapping generations model where agents live three periods and productive investment done in the first period of life is an illiquid investment whose return occurs in the following two periods. A bubble is a liquid speculative investment that facilitates intertemporal consumption smoothing. We show that the distribution of income by age group determines both the existence and the effect of bubbles on aggregate production. We also show that fiscal policy, by changing the distribution of income, may facilitate or prevent the existence of bubbles and may also modify the effect that bubbles have on aggregate production. |
Note: | Versió postprint del document publicat a: https://doi.org/10.1017/S1365100520000371 |
It is part of: | Macroeconomic Dynamics, 2022, vol. 26, num. 3, p. 769-799 |
URI: | http://hdl.handle.net/2445/194436 |
Related resource: | https://doi.org/10.1017/S1365100520000371 |
ISSN: | 1365-1005 |
Appears in Collections: | Articles publicats en revistes (Economia) |
Files in This Item:
File | Description | Size | Format | |
---|---|---|---|---|
731712.pdf | 334.85 kB | Adobe PDF | View/Open |
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.