Bubbles, Crises, and Heterogeneous Beliefs

Wei Xiong
Working Paper 18905
DOI 10.3386/w18905
Issue Date

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.

Published Versions

Bubbles, Crises, and Heterogeneous Beliefs pp. 663-713 24 - Bubbles, Crises, and Heterogeneous Beliefs pp. 663-713 Bubbles, Crises, and Heterogeneous Beliefs By Wei Xiong View chapter as PDF Handbook on Systemic Risk

Related

Topics

Financial Economics
Financial Markets
Portfolio Selection and Asset Pricing

Working Groups

Behavioral Finance

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