Asset price fluctuations without aggregate shocks.

We analyze the pricing of a productive asset in a class of dynamic exchange economies with heterogeneous, infinitely-lived agents, and self-enforcing intertemporal trades. Individual incomes fluctuate and are correlated; preferences, dividends and aggregate income are fixed. Almost all economies in...

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Detalles Bibliográficos
Publicado en:Journal of Economic Theory Vol. 136; no. 1; pp. 126 - 144
Autores principales: Azariadis, Costas, Kaas, Leo
Formato: Artículo
Publicado: Academic Press Inc. September 2007
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        10.1016/j.jet.2006.06.005
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        atl: Asset price fluctuations without aggregate shocks.
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          Azariadis, Costas
          Kaas, Leo
      su:
        Assets (Accounting)
        Pricing
        Market volatility
        Economic shock
        Mathematical models
      sug:
        subj:
          Assets (Accounting)
          Pricing
          Market volatility
          Economic shock
          Mathematical models
      keyword: Asset pricing theory
      ab: We analyze the pricing of a productive asset in a class of dynamic exchange economies with heterogeneous, infinitely-lived agents, and self-enforcing intertemporal trades. Individual incomes fluctuate and are correlated; preferences, dividends and aggregate income are fixed. Almost all economies in this class have a unique stationary Markovian equilibrium with fluctuations in asset prices. As the set of unrationed households changes over time and states, excess demand functions shift, asset returns fluctuate, and some households are shut out of asset markets. Examples suggest that the amplitude of these movements is negatively correlated with the productivity of the asset and with the penalty for default. © 2006 Elsevier Inc. All rights reserved.
      pubtype: Academic Journal
      doctype: Article
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    language: English
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