SOCIAL EFFICIENCY OF BUBBLES IN THE GROSSMAN AND HELPMAN ENDOGENOUS GROWTH-MODEL

Authors
NYSSEN J
Citation
J. Nyssen, SOCIAL EFFICIENCY OF BUBBLES IN THE GROSSMAN AND HELPMAN ENDOGENOUS GROWTH-MODEL, Economics letters, 45(2), 1994, pp. 197-202
Citations number
3
Categorie Soggetti
Economics
Journal title
Economics letters → ACNP
ISSN journal
01651765
Volume
45
Issue
2
Year of publication
1994
Pages
197 - 202
Database
ISI
SICI code
0165-1765(1994)45:2<197:SEOBIT>2.0.ZU;2-6
Abstract
Using a particular specification of the expectation process, I show th at a weak but permanent over-evaluation of financial assets may exist in the Grossman and Helpman (1991, Innovation and growth in the global economy, MIT Press, Cambridge, MA) endogenous growth model with horiz ontal produce differentiation and that the resulting competitive equil ibrium is socially optimal.