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Idiosyncratic risks, self-insurance, and stochastic bubbles

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  • Ohtaki, Eisei

Abstract

This article reconsiders the issue on stochastic bubbles first studied by Weil (1987) in an overlapping generations economy with idiosyncratic risks. Unlike Weil’s own result, stochastic bubbles can occur independently of the confidence level.

Suggested Citation

  • Ohtaki, Eisei, 2013. "Idiosyncratic risks, self-insurance, and stochastic bubbles," Economics Letters, Elsevier, vol. 118(3), pages 429-430.
    • Handle: RePEc:eee:ecolet:v:118:y:2013:i:3:p:429-430
    DOI: 10.1016/j.econlet.2012.12.012
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    References listed on IDEAS

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    1. Philippe Weil, 1987. "Confidence and the Real Value of Money in an Overlapping Generations Economy," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 102(1), pages 1-22.
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    Cited by:

    1. Ohtaki, Eisei, 2014. "Tractable graphical device for analyzing stationary stochastic OLG economies," Journal of Macroeconomics, Elsevier, vol. 40(C), pages 16-26.

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    JEL classification:

    • E40 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - General

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