Abstract
Consider as a starting point for our analysis of rational bubbles the following simple stochastic linear difference equation (2.1) where the current value of the variable y t assumed to be endogenous depends on the expectation of that endogenous variable one period ahead and an exogenous variable1. (2.1) 5-1
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© 1997 Springer-Verlag Berlin Heidelberg
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Salge, M. (1997). On the Theoretical Derivability of Rational Bubbles. In: Rational Bubbles. Lecture Notes in Economics and Mathematical Systems, vol 451. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-59181-5_2
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DOI: https://doi.org/10.1007/978-3-642-59181-5_2
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-62629-9
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