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

Standard tests find that no bubbles are present in the stock price data for the last one hundred years. In contrast …

We analyze the relationship between asset price bubbles and systemic risk, using bank-level data covering almost thirty … years. Systemic risk of banks rises already during a bubble’s build-up phase, and even more so during its bust. The increase …

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

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 …