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...

Full description

Bibliographic Details

Main Authors:	Enders, Zeno (Author) , Hakenes, Hendrik (Author)
Format:	Book/Monograph Working Paper
Language:	English
Published:	Bonn ECONtribute [2021]
Series:	ECONtribute discussion paper no. 058 (January 2021)
In:	ECONtribute discussion paper (no. 058 (January 2021))
Subjects:	Graue Literatur
Online Access:	Verlag, kostenfrei: https://selten.institute/RePEc/ajk/ajkdps/ECONtribute_058_2021.pdf Verlag, kostenfrei: https://econpapers.repec.org/RePEc:ajk:ajkdps:058 Resolving-System, kostenfrei: http://hdl.handle.net/10419/228861
Author Notes:	Zeno Enders, Hendrik Hakenes