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Rational Exuberance

By Stephen F. Le Roy

Journal of Economic Literature, September 2004

This article reviews the theory of speculative bubbles. Bubbles are a promising candidate as an explanation for the stock price run-up and collapse of the 1990s in the United States. The theory considers both irrational and rational bubbles, with emphasis...

Field Experiments

By Glenn W. Harrison and John A. List

Journal of Economic Literature, December 2004

Experimental economists are leaving the reservation. They are recruiting subjects in the field rather than in the classroom, using field goods rather than induced valuations, and using field context rather than abstract terminology in instructions. We arg...

Heterogeneity and Aggregation

By Richard Blundell and Thomas M. Stoker

Journal of Economic Literature, June 2005

This survey covers recent solutions to aggregation problems in three application areas, consumer demand analysis, consumption growth and wealth, and labor participation and wages. Each area involves treatment of heterogeneity and nonlinearity at the indiv...