ScholarLens Back to search
1997•RePEc: Research Papers in EconomicsOpen access

Rational Asset Pricing Bubbles

Manuel S. Santos, Michael Woodford

Open full text 3 citations

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 nonexistence of asset pricing bubbles in those economies. These results imply that the conditions under which bubbles are possible -including some well-known examples of monetary equilibria- are relatively fragile.

About this research paper

What this paper is about

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 nonexistence of asset pricing bubbles in those economies. These results imply that the conditions under which bubbles are possible -including some well-known examples of monetary equilibria- are relatively fragile.

Why it matters

OpenAlex reports 3 citations for this work. Citation counts describe recorded attention and do not establish research quality.

Key contribution

A contribution statement is not available in the OpenAlex record.

Method / approach

Method details are not available in the OpenAlex metadata.

Main findings

Findings are not separately available in the OpenAlex metadata.

Limitations

Limitations are not available in the OpenAlex metadata.

Applications

Application details are not available in the OpenAlex metadata.

Available 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 nonexistence of asset pricing bubbles in those economies. These results imply that the conditions under which bubbles are possible -including some well-known examples of monetary equilibria- are relatively fragile.

Key concepts: Capital asset pricing model, Economics, Consumption-based capital asset pricing model, Asset (computer security), Rational pricing, Arbitrage pricing theory, Investment theory, General equilibrium theory

Related papers

Related paper 1Related paper 2Related paper 3
Back to paper searchBrowse research topicsOriginal source
Rational Asset Pricing Bubbles — Research Paper | ScholarLens