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 …

their fundamentals were caused by the existence of two genres of bubbles: intrinsic bubbles and rational speculative bubbles … collapsing rational bubbles in the post-2000 market …

speculative bubbles and/or noise trading behavior. Our empirical findings for the US stock market covering the 1871:1 - 2000 …

We develop a model of rational bubbles based on leverage and the assumption of an imprecisely known maximum market size … decide whether to lend to traders with limited liability. Bubbles increase welfare of the initial asset holders, but reduce … welfare of future households. We provide general conditions for the possibility of bubbles depending on uncertainty about …

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 …

crash (and rally) discrete jump distributions associated with positive (and negative) bubbles. We assume that crashes tend …, which has been previously proposed as a general definition of bubbles. Our bubble model also allows for a sequence of small …