Department of Economics and Business - Universitat Pompeu Fabra

Title:: The macroeconomics of rational bubbles: a user's guide
Authors:: Alberto Martin and Jaume Ventura
Date:: September 2017 (Revised: February 2018)
Abstract:: This paper provides a guide to macroeconomic applications of the theory of rational bubbles. It shows that rational bubbles can be easily incorporated into standard macroeconomic models, and illustrates how they can be used to account for important macroeconomic phenomena. It also discusses the welfare implications of rational bubbles and the role of policy in managing them. Finally, it provides a detailed review of the literature.
Keywords:: bubbles, credit, business cycles, economic growth, financial frictions, pyramid schemes
JEL codes:: E32, E44, O40
Area of Research:: Macroeconomics and International Economics
Published in:: Annual Review of Economics, 10 (1), 2018, 505-539

Download the paper in PDF format (553 Kb)

Search Working Papers

By Author:
-enter one surname only or surname and first name separated by a comma and in this order-

By Date:
-when used a value in each of the four fields must be selected-
from (month) from (year) to (month) to (year)

By Keywords:
-separate each keyword or group of keywords by commas-

By JEL code(s):
-separate each code by commas-

By Area:

Predefined Queries