estimated in two ways. One may test for speculative bubbles, or fads, by testing whether the two estimates are the same. When … the test is applied to some annual U.S. stock market data, the data usually reject the null hypothesis of no bubbles. The …

This paper analyzes the possible inception of rational inflationary bubbles under the assumption that the empirically … relevant environment precludes the existence of rational deflationary bubbles. The analysis shows that if a rational … bubbles also apply to rational exchange-rate bubbles …

bubbles in stock prices in a model in which stockholders have …rules out the existence of negative rational bubbles. The …

This paper reports empirical tests for the existence of rational bubbles in stock prices. The analysis focuses on a … extraneous variables. The tests are based on the theoretical result that, if rational bubbles exist, time series obtained by …. Applications of the time domain tests to simulated nonstationary time series that would be implied by rational bubbles indicates …

economically interesting, i.e., forward looking, any rational bubbles would be either explosive or implosive. Further arguments … the value of fiat money. These arguments rule out both positive and negative rational bubbles, except for the poissibility … of rational inflationary bubbles.This paper extends the theoretical analysis of rational bubbles in two ways. First, it …

There is a large and growing empirical literature that tests forthe existence of asset-price bubbles or "sunspot …" equilibria -- equilibria unrelated to market fundamentals. Our view is that even tests for non-stationary asset-price bubbles … ruling out nonstationary speculative price bubbles in models based on individual maximizing behavior. In the first part of …

-selling constraints, speculation can generate over- valuation and speculative bubbles. Leverage can substantially inflate speculative …I review the literature on financial speculation driven by belief disagreements from a macro- economics perspective. To … bubbles and leverage limits depend on perceived downside risks. Shifts in beliefs about downside tail scenarios can explain …

We develop a model of asset price bubbles based on the communication process between advisors and investors. Advisors …