, and positive‐feedback traders cause the formation of speculative bubbles. Our model also indicates that traders’ attitudes … frequent occurrence of bubbles. …

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

Why do asset price bubbles continue to appear in various markets? This paper provides an overview of recent literature … on bubbles, with significant attention given to behavioral models and rational models with frictions. Unlike the standard … insights for how bubbles are initiated and sustained, the reasons they burst, and why arbitrage forces do not routinely step in …

Why do asset price bubbles continue to appear in various markets? What types of events give rise to bubbles and why do … arbitrage forces fail to quickly burst them? Do bubbles have real economic consequences and should policy makers do more to … prevent them? This paper provides an overview of recent literature on bubbles, with significant attention given to behavioral …

reflects very well the financial market crises and pricing bubbles over the past 20 years. …