. The latter is more likely if bubbles develop along the expansionary path. These (rational) bubbles can emerge even when …

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 …

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