Asset bubble and endogenous labor supply: A clarification

Kathia Bahloul Zekkari, Thomas Seegmuller

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)


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 languageEnglish
Article number109537
JournalEconomics Letters
Publication statusPublished - Nov 2020
Externally publishedYes


  • Asset bubbles
  • Crowding-in effect
  • Endogenous labor
  • Overlapping generations

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics


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