Bubbles, Crises, and Heterogeneous Beliefs

Wei Xiong

doi:10.3386/w18905

Bubbles, Crises, and Heterogeneous Beliefs

Wei Xiong

Working Paper 18905

DOI 10.3386/w18905

Issue Date March 2013

This paper reviews the quickly growing literature that builds on heterogeneous beliefs, a widely observed attribute of individuals, to explain bubbles, crises, and endogenous risk in financial markets.

This chapter is prepared for Handbook for Systemic Risk edited by Jean-Pierre Fouque and Joe Langsam. I thank Hersh Shefrin for helpful editorial suggestions. The views expressed herein are those of the author and do not necessarily reflect the views of the National Bureau of Economic Research.
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Wei Xiong, "Bubbles, Crises, and Heterogeneous Beliefs," NBER Working Paper 18905 (2013), https://doi.org/10.3386/w18905.

Bubbles, Crises, and Heterogeneous Beliefs

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