This paper investigates the nature and the presence of bubbles in financial markets. Are bubbles consistent with … are some of the questions asked in the first three sections. The general conclusion is that bubbles, in many markets, are … consistent with rationality, that phenomena such as runaway asset prices and market crashes are consistent with rational bubbles …

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

document two ways the market valuation of innovation and its economic impact become disconnected during bubbles. Specifically … firms will succeed that reconciles both the facts, unlike existing models of bubbles. Optimal innovation policy during … bubbles must account for the disconnect …

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 …

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

speculative bubbles. This study examines the sense in which speculative bubbles could in theory lead to excess volatility, hut it … demonstrates that some of the variance hounds evidence reported to date precludes bubbles as a reason why asset prices might …, to an unwary researcher, to contain bubbles …

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 …

deterministic bubbles and stochastic bubbles, for a model of inflation and for a model of the evolution of price and quantity in the … market fora storable commodity, such as gold. The analysis focuses on stochastic bubbles as a possibility peculiarly … points to no compelling reason to rule out rational stochastic bubbles apriori, conventional behavioral assumptions imply …