Asset bubble and endogenous labor supply: A clarification

Kathia Bahloul Zekkari; Thomas Seegmuller

doi:10.1016/j.econlet.2020.109537

Asset bubble and endogenous labor supply: A clarification

Kathia Bahloul Zekkari, Thomas Seegmuller

Research output: Contribution to journal › Article › peer-review

1 Citation (Scopus)

Abstract

This paper analyzes the link between asset bubbles, endogenous labor and capital. First, we explicitly and theoretically derive the conditions to have a crowding-in effect of the bubble, i.e. higher levels of capital and labor. Second, the utility function we consider shows that this result does not require an arbitrarily high elasticity of intertemporal substitution in consumption.

Original language	English
Article number	109537
Journal	Economics Letters
Volume	196
DOIs	https://doi.org/10.1016/j.econlet.2020.109537
Publication status	Published - Nov 2020
Externally published	Yes

Keywords

Asset bubbles
Crowding-in effect
Endogenous labor
Overlapping generations

ASJC Scopus subject areas

Finance
Economics and Econometrics

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10.1016/j.econlet.2020.109537

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title = "Asset bubble and endogenous labor supply: A clarification",

abstract = "This paper analyzes the link between asset bubbles, endogenous labor and capital. First, we explicitly and theoretically derive the conditions to have a crowding-in effect of the bubble, i.e. higher levels of capital and labor. Second, the utility function we consider shows that this result does not require an arbitrarily high elasticity of intertemporal substitution in consumption.",

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author = "{Bahloul Zekkari}, Kathia and Thomas Seegmuller",

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AB - This paper analyzes the link between asset bubbles, endogenous labor and capital. First, we explicitly and theoretically derive the conditions to have a crowding-in effect of the bubble, i.e. higher levels of capital and labor. Second, the utility function we consider shows that this result does not require an arbitrarily high elasticity of intertemporal substitution in consumption.

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KW - Overlapping generations

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Asset bubble and endogenous labor supply: A clarification

Abstract

Keywords

ASJC Scopus subject areas

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