Econometrica Vol. 65 No. 1 1997

Rational Asset Pricing Bubbles

Manuel S. Santos^1,2,3,4; Michael Woodford^1,2,3,4

¹ Instituto Nacional de Matemática Pura e Aplicada · ² Art Institute of Chicago · ³ University of Chicago · ⁴ Universidad Carlos III de Madrid

Abstract

This paper provides a fairly systematic study of general economic conditions under which rational asset pricing bubbles may arise in an intertemporal competitive equilibrium framework.Our main results are concerned with non-existence of asset pricing bubbles in those economies.These results imply that the conditions under which bubbles are possible inc1uding sorne well-known examples of monetary equilibria-are relatively fragile.

DOI

10.2307/2171812

Volume

65

Issue

1

Pages

19

Sources

bibtex:phds-export.bib openalex crossref

Cite

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