Intangible capital, relative asset shortages and bubbles /

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Bibliographic Details
Author / Creator:	Giglio, Stefano W., author.
Imprint:	[Washington, D.C.] : International Monetary Fund, ©2011.
Description:	1 online resource (39 pages)
Language:	English
Series:	IMF working paper ; WP/11/271 IMF working paper ; WP/11/271.
Subject:	Intangible property -- Econometric models. Capital -- Econometric models. Assets (Accounting) -- Prices -- Econometric models. Business cycles -- Econometric models. Assets (Accounting) -- Prices -- Econometric models. Business cycles -- Econometric models. Capital -- Econometric models.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/12499660

Hidden Bibliographic Details
Other authors / contributors:	Severo, Tiago, author. International Monetary Fund. Monetary and Capital Markets Department, issuing body.
ISBN:	1283569612 9781283569613 1463937016 9781463937010
Notes:	At head of title: MCM. Title from PDF title page (IMF Web site, viewed November 23, 2011). "November 2011." Includes bibliographical references.
Summary:	We analyze an overlapping generations economy with financial frictions and accumulation of both physical and intangible capital. The key difference between them is that intangible capital cannot be used as collateral for borrowing. As intangibles become more important in production, financial frictions tighten and equilibrium interest rates decline, creating the conditions for the emergence of rational bubbles. We also analyze the question of dynamic efficiency, demonstrating that, in the presence of financial frictions, neither the interest rate test nor the test proposed by Abel et al. (1989) are appropriate. Finally we show that, in general, rational bubbles are not Pareto improving in our framework.
Standard no.:	10.5089/9781463937010.001

Table of Contents:

Abstract; Contents; I. Introduction; II. Evidence on Intangible Capital and Financing Constraints; A. THE INCREASED IMPORTANCE OF INTANGIBLE CAPITAL; B. INTANGIBLE CAPITAL, COLLATERAL AND FINANCING CONSTRAINTS; III. Model; A. THE OLG STRUCTURE; B. PRODUCTION AND FINANCIAL FRICTIONS; IV. Existence and Characterization of Equilibria; A. THE BUBBLELESS ECONOMY; B. THE BUBBLY ECONOMY; C. STOCHASTIC BUBBLES; V. Intangible Capital, Technological Change, and Bubbles; A. THE IMPORTANCE OF INTANGIBLE CAPITAL AND BUBBLES; B. STOCHASTIC TECHNOLOGICAL PROGRESS AND BUBBLES.
C. RELATION TO THE SAVINGS GLUT EXPLANATIONVI. Dynamic Efficiency; A. TRADITIONAL TESTS OF DYNAMIC EFFICIENCY; B. NORMATIVE AND POSITIVE IMPLICATIONS IN A BUBBLY ECONOMY; VII. Conclusion; Figures; Tables; References.

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