TY  - BOOK
AU  - Giglio,Stefano
AU  - Severo,Tiago
TI  - Intangible Capital, Relative Asset Shortages and Bubbles
T2  - IMF Working Papers; Working Paper
SN  - 1463925263 :
SN  - 1018-5941
PY  - 2011///
CY  - Washington, D.C.
PB  - International Monetary Fund
KW  - Dynamic Inefficiency
KW  - imf
KW  - Economic Growth and Aggregate Productivity: General
KW  - Entrepreneur
KW  - Entrepreneurs
KW  - Financial Constraints
KW  - Financial Markets and the Macroeconomy
KW  - United States
N2  - 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
UR  - http://elibrary.imf.org/view/IMF001/12308-9781463925260/12308-9781463925260/12308-9781463925260.xml
UR  - http://www.imfbookstore.org/IMFORG/9781463925260
ER  -