Rational Asset Pricing Bubbles Revisited

Preprint OPEN
Jan Werner;
(2012)
  • Subject:
    arxiv: Computer Science::Computational Engineering, Finance, and Science | Computer Science::Computer Science and Game Theory
Price bubble arises when the price of an asset exceeds the asset's fundamental value, that is, the present value of future dividend payments. The important result of Santos and Woodford (1997) says that price bubbles cannot exist in equilibrium in the standard dynamic a... View more
  • References (16)
    16 references, page 1 of 2

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