supporting the resale option theory of bubbles: investors overpay for a warrant hoping to resell it at an even higher price to a …

and Porter (1981) and Shiller (1981a). It appears that neither small sample bias, rational bubbles nor some standard …

financial index investment in recent years did not cause massive bubbles in agricultural futures prices …

individuals, to explain bubbles, crises, and endogenous risk in financial markets …

-sales constraints, that this is where the similarity ends. Equity bubbles are loud: price and volume go together as investors speculate … payoff is bounded. Debt bubbles then require an optimism bias among investors. But greater optimism leads to less speculative … trading as investors view the debt as safe and having limited upside. Debt bubbles are hence quiet--high price comes with low …

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 …