We study speculative behavior in a stochastic overlapping-generations mode1 and we show how the link between the existence of bubbles and dynamic inefficiency, which has been established for the deterministic case, is broken when risk-related factors, such as risk premia and capital gains, are explicitly taken into account.
Bubbles and Inefficiencies / Bertocchi, Graziella. - In: ECONOMICS LETTERS. - ISSN 0165-1765. - STAMPA. - 35:(1991), pp. 117-122.