SFI External Professor John Geanakoplos and his collaborator provide a pricing theory for emergent asset classes, like emerging markets, that are not yet mature enough to be attractive to the general public. They show the role of leverage cycle and provide an explanation for the volatile access of emerging economies to international financial markets, using a general equilibrium model. See “Leverage Cycles and the Anxious Economy,” A. Fostel and J. Geanakoplos, American Economic Review 98(4) (2008): 1211-1244.