Taking stock of targeted therapy in cancer: rational expectations or irrational exuberance?

Financial Fragility with Rational and Irrational Exuberance

This article formalizes investor rationality and irrationality, exuberance and apprehension, to consider the implications of belief formation for the fragility of an economy’s financial structure. The model presented generates a financial structure with portfolio linkages that make it susceptible to contagious financial crises, despite the absence of coordination failures. Investors forecast th...

antibiotic prescribing review: rational or irrational therapy?

Irrational exuberance in clinical proteomics.

Is the siren call of ‘‘omics’’-based tests luring researchers, physicians, patients, and entrepreneurs onto the rocks of unproven and unapprovable diagnostics technology, or will the winds of technological change enable them to reach the beachhead safely? In the marketplace, patients and caregivers welcome minimally invasive tests enabling improved decision making and better outcomes. Thanks to...

EDITORIAL / - Blockade - rational or irrational therapy for congestive heart failure ?

CLINICAL AND BASIC RESEARCH in the arena of congestive heart failure is intensive. Nevertheless, accepted treatment modalities for patients with this debilitating and fatal disease are limited to just three: digitalis, diuretics, and vasodilators, and only the latter has been demonstrated to improve survival in patients with congestive heart failure.1 Although cardiac transplantation markedly r...

Near-Rational Exuberance

We study how the use of judgement or “add-factors” in macroeconomic 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 standard macroeconomic environments. Examples include a simple asset pricing model and the New Keynesian monetary policy framework....