Title: A model of near-rational exuberance
Description: "We study how the use of judgment or--add-factors--in forecasting may disturb the set of equilibrium outcomes when agents learn using recursive methods.  We isolate conditions under which new phenomena, which we call exuberance equilibria, can exist in a standard self-referential environment.  Local indeterminacy is not a requirement for existence.  We construct a simple asset pricing example and find that exuberance equilibria, when they exist, can be extremely volatile relative to fundamental equilibria"--Federal Reserve Bank of St. Louis web site.