Lagunoff, Roger; Schreft, Stacey L - In: Journal of Money, Credit and Banking 31 (1999) 3, pp. 531-60
This article formalizes investor rationality and irrationality, exuberance and apprehension, to consider the implications of belief formation for the fragility of an economy's financial structure. The model presented generates a financial structure with portfolio linkages that make it...