Rational Speculation
Bibliographic Data
| ID | 10174485 |
|---|---|
| Authors | John Leach (0000-0003-4104-7684, corresponding author) |
| Year | 1991 |
| Volume | 99 |
| Issue | 1 |
| Pages | 131-144 |
| Publication date | 1991-02-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of Political Economy (JOURNAL) |
| Journal identifiers | ISSN: 0022-3808 • E-ISSN: 1537-534X |
| Publisher | University of Chicago Press (PUBLISHER • US) |
| DOI | 10.1086/261743 |
| OpenAlex | W4245500670 |
| Language | EN |
The stationary equilibrium of an overlapping generations economy in which agents trade a single asset is examined. If agents live for only two periods, the selling prices follow an identically and independently distributed process. If agents live for more than two periods, the selling prices follow a Markov process. An implication of the model is that price bubbles can occur in a stationary, rational expectations equilibrium. Copyright 1991 by University of Chicago Press
Asset (computer security · Econometrics · Economics · Financial economics · Independent and identically distributed random variables · Markov chain · Markov perfect equilibrium · Mathematical economics · Microeconomics · Monetary economics · Nash equilibrium · Overlapping generations model · Process (computing · Rational expectations · Speculation · Statistics · Computer Science · Economic theories and models · Finance · Mathematics
| Citation velocity | historical |
|---|---|
| Highly cited | No |