The optimal design of Ponzi schemes in finite economies

Journal of Financial Intermediation

Volumn 12, Issue 1, 2003, Pages 2-24

  Bhattacharya, Utpal ^a  

^a INDIANA UNIVERSITY   (United States)

Author keywords

Bailout; Bubbles; Moral hazard; Ponzi schemes

Indexed keywords

EID: 0037256095     PISSN: 10429573     EISSN: None     Source Type: Journal    
DOI: 10.1016/S1042-9573(02)00007-4     Document Type: Review

References (27)

1. Abreu, D., Brunnermeier, M., 2001. Bubbles and crashes. Working paper, Princeton University, Princeton, NJ.
2. Allen, F., Gorton, G., 1993. Churning bubbles. Review of Economic Studies 60, 813-836.
3. Allen, F., Morris, S., Postlewaite, A., 1993. Finite bubbles with short sale constraints and asymmetric information. Journal of Economic Theory 61, 206-229.
4. Bewley, T., 1980. The optimum quantity of money. In: Kareken, J., Wallace, N. (Eds.), Models of Monetary Economics. Federal Reserve Bank, Minneapolis, MN.
5. Bezemer, D., 1998. Post-socialist financial fragility: The case of Albania. Working paper, University of Amsterdam, Amsterdam.
6. Bhattacharyya, S., Lipman, B., 1995. Ex ante versus interim rationality and the existence of bubbles. Economic Theory 6, 469-494.
7. Boycko, M., Shleifer, A., 1993. The Politics of Russian Privatization, Post-Communist Reform: Pain and Progress. MIT Press, Cambridge, MA.
8. Brock, W., 1979. An integration of stochastic growth theory and the theory of finance, Part I: The growth model. In: Green, J., Scheinkman, J. (Eds.), General Equilibrium, Growth and Trade. Academic Press, New York, NY.
9. Brock, W., 1982. Asset prices in a production economy. In: McCallum, J. (Ed.), The Economics of Information and Uncertainty. University of Chicago Press, Chicago, IL:
10. De Long, J., Shleifer, A., Summers, L., Waldmann, R., 1990. Noise trader risk in financial markets. Journal of Political Economy 98, 703-738.
11. Demirguc-Asli, K., Kane, E., 2002. Deposit insurance around the globe: Where does it work. Journal of Economy Perspectives 16, 175-195.
12. Diamond, D., Dybvig, P., 1983. Bank runs, deposit insurance, and liquidity. Journal of Political Economy 91, 401-419.
13. Garber, P., 1990. Famous first bubbles. Journal of Economic Perspectives 4, 35-54.
14. Gilles, C., LeRoy, S., 1992. Bubbles and charges. International Economic Review 33, 323-339.
15. Glosten, L., Milgrom, P., 1985. Bid, ask and transactions prices in a specialist model with heterogeneously informed traders. Journal of Financial Economy 14, 71-100.
16. Huang, K., Werner, J., 1997. Valuation bubbles and sequential bubbles. Working paper, University of Minnesota, Minneapolis, MN,.
17. Kindleberger, C., 1978. Manics, Panics and Crashes. Basic Books, New York, NY.
18. Kocherlakota, N., 1992. Bubbles and constraints on debt accumulation. Journal of Economic Theory 57, 245-256.
19. Mackay, C., 1841. Extraordinary Popular Delusions and the Madness of Crowds. Farrar, Straus and Giroux, New York, NY.
20. Rao, A., Miller, P., 1975. Advertising/sales response functions. Journal of Advertising Research 15, 7-15.
21. Sadiraj, K., van Ewijk, C., van Wijnbergen, S., 1998. The Albania crisis: Pyramid schemes and their economic and political effects. Working paper, University of Amsterdam, Amsterdam.
22. Santos, M., Woodford, M., 1997. Rational asset pricing bubbles. Econometrica 65, 19-57.
23. Scheinkman, J., 1988. Dynamic general equilibrium models - two examples. In: Ambrosetti, A., Gori, F., Luchetti, R. (Eds.), Mathematical Economics. Springer-Verlag, New York, NY.
24. Shiller, R., 1981. Do stock prices move too much to be justified by subsequent changes in dividends? American Economic Review 71, 421-436.
25. Shleifer, A., Summers, L., 1990. The noise trader approach to finance. Journal of Economic Perspectives 4, 19-33.
26. Tirole, J., 1982. On the possibility of speculation under rational expectations. Econometrica 50, 1163-1182.
27. Tirole, J., 1985. Asset bubbles and overlapping generations. Econometrica 53, 1499-1528.