, abound. While the role of investor contagion in asset bubbles has been explored extensively in the theoretical literature …

We present an extrapolative model of bubbles. In the model, many investors form their demand for a risky asset by … about fundamentals can trigger large price bubbles. We analyze the patterns of cash-flow news that generate the largest … bubbles, the reasons why bubbles collapse, and the frequency with which they occur. The model also predicts that bubbles will …

History is important to the study of financial bubbles precisely because they are extremely rare events, but history … can be misleading. The rarity of bubbles in the historical record makes the sample size for inference small. Restricting …%. In simple terms, bubbles are booms that went bad. Not all booms are bad …

What risks do asset price bubbles pose for the economy? This paper studies bubbles in housing and equity markets in 17 … countries over the past 140 years. History shows that not all bubbles are alike. Some have enormous costs for the economy, while … others blow over. We demonstrate that what makes some bubbles more dangerous than others is credit. When fueled by credit …

Hoarding by large speculators is often blamed for contributing to commodity market panics and bubbles. Using …

environment is conducive to countries experiencing credit bubbles that have large macroeconomic effects at home and are quickly … propagated abroad. In previous work, we built on the theory of rational bubbles to develop a framework to think about the origins … and domestic effects of these credit bubbles. This paper extends that framework to two-country setting and studies the …