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 develop a model of rational bubbles based on the assumptions of unknown market liquidity and limited liability of … condition for whether rational bubbles are possible. Based on this analysis, we discuss several widely-discussed policy measures … with respect to their effectiveness in preventing bubbles. A reduction of manager bonuses or a Tobin tax can create or …

-stamp bubbles in the emerging and frontier African stock markets. We find periods of explosive behavior in the price–dividend ratio … in several markets which is indicative of irrational exuberance. We find strong evidence of multiple speculative bubbles …

and fiscal policy on the occurrence of bubbles, the introduction of a probability of market crash and the effect of … bubbles on income inequality …

This paper examines whether theoretical models of bubbles based on the notion that the price of an asset can deviate … from its fundamental value are useful for understanding phenomena that are often described as bubbles, and which are … trading would emerge. In addition, I show that these models imply that speculative bubbles can be associated with low rather …

This paper develops a general equilibrium model to examine the quantitative effects of speculative bubbles on capital … late 1990s. The welfare cost of speculative bubbles depends crucially on parameter values. Bubbles can improve welfare if …, the welfare cost of bubbles is large, typically exceeding one percent of annual consumption …

This paper develops an equilibrium model of speculative bubbles that can be used to explore the role of various … policies in either giving rise to or eliminating the possibility of asset bubbles, e.g. restricting the use of certain types of …

We introduce a model of super-exponential financial bubbles with two assets (risky and risk-free), in which …

Reviewing the definition and measurement of speculative bubbles in context of contagion, this paper analyses the DotCom …. Even it is astonishing, that the contagion is lower during price bubbles, the main finding indicates the presence of …

is able to account for the development of endogenous bubbles and crashes. We distinguish three different regimes …’ opinions are idiosyncratic and no bubbles emerge. Around the critical value of the O(n) vector model, cross sectionally … asynchronous bubbles emerge. Above the critical value, small random price fluctuations may be amplified by noise traders herding …