timing bubbles and crashes of individual stocks. Our findings imply that sophisticated investors may not always trade against … rational speculative bubbles, not entirely from sentiment-driven overpricing …

We develop a parsimonious model of bubbles based on the assumption of imprecisely known market depth. In a speculative … possibility of bubbles depending on the risk-free rate, uncertainty about market depth, and traders’ degree of leverage. This … allows us to discuss several policy measures. Bubbles always reduce aggregate welfare. Among others, certain monetary policy …

We investigate the role played by the anchoring-and-adjustment heuristic in the speculative bubbles dynamics. In order … bring the evidence that large speculative bubbles can only occur when fundamental traders highly anchor to stock market … with slowly mean reverting bubbles lasting many years …

, I review the existing literature and reflect on asset pricing tests to detect bubbles. I show that the emergence of … rational bubbles within the EMH framework is indeed possible as long as a number of assumptions is not violated. As researchers … show, these assumption do not hold in practice, which means that rational bubbles can be ruled out. Thus, a bubbles is …

speculative bubbles and/or noise trading behavior. Our empirical findings for the US stock market covering the 1871:1 - 2000 …

Evidence suggests that rational, periodically collapsing speculative bubbles may be pervasive in stock markets globally … asset pricing model that allows for speculative bubbles to affect stock returns. We show that stocks incorporating larger … bubbles yield higher returns. The bubble deviation, at the stock level as opposed to the industry or market level, is a priced …