On the dynamics of stock price bubbles: Comments on a model by Miao and Wang

Author(s)
Gerhard Sorger
Abstract

We consider the model by Miao and Wang, in which the existence of endogenous collateral constraints allows for the existence of stock price bubbles. Whereas Miao and Wang characterize the local dynamics around stationary equilibria only under the assumption of risk neutral households, we extend this characterization to the case of risk aversion.

Organisation(s)
Department of Economics
No. of pages
18
Publication date
07-2018
Austrian Fields of Science 2012
502018 Macroeconomics, 502009 Corporate finance
Portal url
https://ucrisportal.univie.ac.at/en/publications/56f502b9-9767-4f01-abd6-5fe003a699eb