We build an innite-horizon dynamic deterministic general equilibrium model with
imperfect market (borrowing constraint) in which heterogenous agents invest in capital
or nancial asset, work and consume, a representative rm maximizes prot. Firstly,
the existence of intertemporal equilibrium is proved even if aggregate capital is not
uniformly bounded. Secondly, we dene and study nancial bubble and physical bub-
ble. Both nancial and physical bubbles may occur but they can not occur at the same
time. Lastly, we study impact of physical productivity and nancial dividend on the
physical market which we call “the race between productivity and dividend”.