Market depth, leverage, and speculative bubbles

We develop a model of rational bubbles based on leverage and the assumption of an imprecisely known maximum market size. In a bubble, traders push the asset price above its fundamental value in a dynamic way, driven by rational expectations about future price developments. At a previously unknown da...

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Bibliographic Details

Main Authors:	Enders, Zeno (Author) , Hakenes, Hendrik (Author)
Format:	Book/Monograph Working Paper
Language:	English
Published:	Munich CESifo, Center for Economic Studies & Ifo Institute December 2017
Series:	CESifo working paper Category 6, Fiscal policy, macroeconomics and growth no. 6806
In:	CESifo working papers (no. 6806)
Subjects:	Arbeitspapier Graue Literatur
Online Access:	Resolving-System, kostenfrei, Volltext: http://hdl.handle.net/10419/174929 Verlag, kostenfrei, Volltext: http://www.cesifo-group.de/ifoHome/publications/docbase/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2017/wp-cesifo-2017-12/12012017006806.html Verlag, kostenfrei, Volltext: http://www.cesifo-group.de/DocDL/cesifo1_wp6806.pdf
Author Notes:	Zeno Enders, Hendrik Hakenes