14. Dezember 2026, 16:00 bis 17:30

Economic Theory & Policy Seminar / G. Sorger (University of Vienna) / Inevitability of stock price bubbles in simple growth models

Seminar

Gerhard Sorger will give a talk at our Economic Theory and Policy Seminar.

Gerhard Sorger (University of Vienna)

“Inevitability of stock price bubbles in simple growth models”

We consider a number of deterministic models of economic growth in which all agents act rationally and the unique perfect foresight equilibrium features a stock price bubble. The key assumptions are that the production technology exhibits decreasing returns to scale (so that firms earn positive profits) and that wage income and dividend income have different growth rates. We relate the latter property to the violation of the Inada conditions for labor. The unique equilibrium fails to satisfy the property of balanced growth.

Kalendereintrag
Veranstaltungsort
TU Wien
1040 Vienna
Wiedner Hauptstr. 8-10, Seminarroom: DB03 yellow (Freihaus building, yellow area, 3rd floor)
Veranstalter
ECON
Julia Hutter
julia.hutter@tuwien.ac.at
Öffentlich
Ja
Kostenpflichtig
Nein
Anmeldung erforderlich
Nein