This paper presents a stylized model of international trade and asset price bubbles. Its central insight is that … bubbles tend to appear and expand in countries where productivity is low relative to the rest of the world. These bubbles … productivity countries. Through this channel, bubbles act as substitute for international capital flows, improving the …

type of rational bubble that depends exclusively on dividends. We call such bubbles "intrinsic" bubbles because they derive … examples of rational bubbles, intrinsic bubbles provide an empirically plausible account of deviations from present …

not valid in general: as soon as bubbles affect interest rates, the fundamental value of a stock depends on whether or not …-bubble price. Under conditions made precise below, there can therefore be price decreasing bubbles, and an asset can be …

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

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 …