LAU, EE LENG; TAN, G. K. RANDOLPH; RAHMAN, SHAHIDUR - In: The Singapore Economic Review (SER) 50 (2005) 02, pp. 175-196
In the folklore of emerging markets, there is a popular belief that bubbles are inevitable. In this paper, our objective is to estimate a state-space model for rational bubbles in selected Asian economies with the aid of the Kalman Filter. For each economy, we derive a possible picture of the...