Abstract
By replacing assumptions on the satisfaction of the transversality condition with introducing capital gains taxes, transaction or property taxes, rebate options, and fixed periods of asset usage, rational bubble is shown to be preventable. For an existing bubble, hard- and soft-landings are shown to be possible. Hard landing is defined by a bubble which crashes via financial or tax tools, while soft landing is defined as an increasing bubble reaching some stable value via taxes. Japan, U.S., and Greece experienced real estate bubbles and hard landings, while Taiwan ended its real estate bubble in the 1980s with a soft landing.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
