Evidence suggests that rational, periodically collapsing speculative bubbles may be pervasive in stock markets globally … asset pricing model that allows for speculative bubbles to affect stock returns. We show that stocks incorporating larger … bubbles yield higher returns. The bubble deviation, at the stock level as opposed to the industry or market level, is a priced …

bubbles for a certain setup of a feedback trader model. Moreover, similar studies very often face the criticism that chartists … might run out of money before the emergence of bubbles, as these studies typically analyze the role of chartists with …

calculations, they analytically prove that the presence of fundamentalists is not sufficient to avoid asset price bubbles. The …

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 …

monetary model based on Rocheteau, Weill, and Wong (2018). In the model, a speculation shock that generates an asset boom is …

We present a robust model of speculative bubbles by introducing loss-averse reference-dependent preferences by Koszegi … notion of bubbles to allow for the analysis in the case of a silent market with unobservable prices, and our model is able to … generate strong bubbles robust to moderate perturbations in parameters without the need for stronger conditions as suggested in …

We develop a parsimonious model of bubbles based on the assumption of imprecisely known market depth. In a speculative … for the possibility of bubbles depending on the risk-free rate, uncertainty about market depth, banks' degree of leverage …, and bankers' bonus structure. This allows us to discuss several policy measures. Bubbles always reduce aggregate welfare …

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 argues that short selling might give rise to bubbles that would otherwise not exist in equilibrium. It is …