We construct asset markets, that are similar to those studied by Smith, Suchanek and Willians (1988), in which bubbles and crashes tended to occur. The main difference between the markets studied here and those studied by Smith et al. are that in the markets studied here, the fundamental values...

We report the results of an experiment designed to study the role of speculation in the formation of bubbles and crashes in laboratory asset markets. In a setting in which speculation is not possible, bubbles and crashes are observed. The results suggest that the departures from fundamental...

This paper presents a two-country, two-good, two-currency overlapping generatioons models that features limited participation and costly state verification inthe credit market.

This paper presents a two-country, two-good, two-currency overlapping generatioons models that features limited participation and costly state verification inthe credit market.