in The Review of Financial Studies
January 2008; p ublished online January 2008 .
Journal Article. Subjects: Economics; General Equilibrium and Disequilibrium; Financial Markets; Intertemporal Choice and Growth; Money and Interest Rates. 13152 words.
We present a rational general equilibrium model that highlights the fact that relative wealth concerns can play a role in explaining financial bubbles. We consider a finite-horizon...