Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7359151 | Journal of Economic Theory | 2018 | 32 Pages |
Abstract
We show that there exist models with rational agents, three periods, and five states of the world, which have a strong bubble in one of these states. However, no finite-horizon rational strong bubble model, with standard Walrasian markets, can have fewer than five states.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Feng Liu, John R. Conlon,