This paper investigates whether there are bubbles in stock prices. We do this using a previously studied structural … tandem with their fundamentals. We therefore find no evidence in favor of stock price bubbles in all the countries invested. …

Empirical tests for bubbles typically focus on the stationarity properties of the dividend yield. Evidence of … nonstationarity in the dividend yield is viewed as proof of bubbles, while stationarity is interpreted as absence of bubbles. For … economies with arbitrary pricing kernels but stationary risk-free rates, I show that there exist bubbles that are strictly …