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This paper develops a model of share price formation driven by accounting and market structures. Heterogeneous investors are assumed to discover and process fundamental information disclosed by the accounting system. The information set available to share market investors is then jointly...
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We develop a model to rationalize and examine so-called “research bubbles”, i.e. research activities based on … overoptimistic beliefs about the impact of this research on the economy. Research bubbles occur when researchers selfselect into … research activities and the government aggregates the assessment of active researchers on the way advances in research may spur …
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