of financial bubbles depress the real economy? This paper addresses these questions by constructing an infinite …-horizon heterogeneous agent general equilibrium model with speculative bubbles. We characterize conditions under which storable goods …, regardless of their intrinsic values, can carry bubbles and agents are willing to invest in such bubbles despite their positive …

that low economic growth propagates bubbles. Further exploration of the cyclicality in the bubbly asset shows that its …

Speculation, in the spirit of Harrison and Kreps [1978], is introduced into a standard real business cycle model … generated by speculation for any model of beliefs - a factor of 1.5. A calibration based on diagnostic beliefs amplifies hours …

experiences speculation-driven extrapolative bubbles. The equilibrium allocation of talent in the decentralized economy encourages … a negative externality on the manufacturing sector, but speculation is also a source of financial fragility. The reason … across sectors is then proposed to fix the talent misallocation caused by speculative bubbles …

We analyze a controlled price formation experiment in the laboratory that shows evidence for bubbles. We calibrate two … models that demonstrate with high statistical significance that these laboratory bubbles have a tendency to grow faster than …

residential real estate market where transaction traits associated with short-term speculation can be identified. In the cross …

The presence of rational speculative bubbles in 28 commodities is investigated using the duration dependence test on …

This paper is the first to utilize a direct test for periodic, partially collapsing speculative bubbles in US REIT … bubbles, most notably in the Mortgage REITs series. There is also visual evidence of a negative bubble in all three series in … bubbles or indeed taking advantage of such bubbles …