The authors examine if observed asset prices in Latin America depart significantly from fundamentals-determined levels. These departures, or bubbles, are found to be equally determined by both country-specific and common external variables, contrary to previous studies that found that local...

Intro -- Contents -- Acknowledgments -- Introduction -- Institutions Matter for Development -- Institutional Reform Is Possible -- Institutions, Governance, and Incentives in Banking: Safety Net Arrangements -- Capital Markets and Legal Institutions -- Reforming the School in Latin America and...