id	author	title	date	pages	extension	mime	words	sentences	flesch	summary	cache	txt
work_wcs7iehu5vcjte4sceucdugkra	George-Marios Angeletos	Beauty Contests and Irrational Exuberance: A Neoclassical Approach	2010	48	.pdf	application/pdf	21887	1734	63	financial markets look at the real sector for signals about the profitability of the new investment This observation is crucial, for it implies that the (rational) pricing errors that occur in the financial market are partly predictable by the typical entrepreneur. trade and no other payoff links across agents, our results rest on the presence of trading opportunities: if the entrepreneurs never sold their capital in the financial market, both the amplification Condition (iii) requires that the equilibrium price be consistent with market clearing and rational expectations on the traders' side, taking as given the collective behavior of the This result establishes that, in the absence of information spillovers, it is irrelevant for equilibrium outcomes whether investment is driven by the entrepreneurs' expectations of the fundamental Substituting condition (2) into condition (3), we can express the traders' expectation of the fundamentals, and therefore the equilibrium price, as a linear function of aggregate investment.	./cache/work_wcs7iehu5vcjte4sceucdugkra.pdf	./txt/work_wcs7iehu5vcjte4sceucdugkra.txt