Rational Bubbles: A Clarification

• Tác giả: Tomohiro Hirano, Alexis Akira Toda
• Ngôn ngữ: eng
• Ký hiệu phân loại: 128.33 Reason and rationality
• Thông tin xuất bản: 2024
• Bộ sưu tập: Metadata
• ID: 203402

Tóm tắt

"Rational bubble", as introduced by the famous paper on money by Samuelson (1958), means speculation backed by nothing. The large subsequent rational bubble literature has identified attaching bubbles to dividend-paying assets in a natural way as an important but challenging question. Miao and Wang (2018) claim to "provide a theory of rational stock price bubbles". Contrary to their claim, the present comment proves the nonexistence of rational bubbles in the model of Miao and Wang (2018). We also clarify the precise mathematical definition and the economic meaning of "rational bubble" in an accessible way to the general audience.