Awaya, Yu; Iwasaki, Kohei; Watanabe, Makoto - In: Theoretical Economics 17 (2022) 4, pp. 1559-1587
This paper develops a model of rational bubbles where trade of an asset takes place through a chain of middlemen. We … bubbles although the fundamental value is constant over time. Bubbles may be detrimental to the economy, but any announcement …