Asset market bubbles and crashes are a major source of economic instability and inefficiency. Sometimes ascribed to …

Bubbles are recurrent events, which contribute to both macroeconomic and employment volatility. We introduce stochastic … bubbles in the standard search-and matching model of the labor market. The economy alternates between latent and bubbly states …, each being associated with a distinct solution for the market value of firms (respectively, stable or explosive). Bubbles …

We study the macroeconomic effects of rational asset bubbles in an overlapping-generations economy where asset trading … are large, the private gains associated with trading asset bubbles may lead too many workers to become speculators …, thereby causing rational bubbles to lose their efficiency properties. Moreover, if speculation can be carried out by skilled …

We study the effect of team decision-making on bubbles and crashes in experimental asset markets of the kind introduced …

considerations moves behavior toward traditional economic rationality in UG, PD, and DG. Despite entering the study with higher …