fads rather than market fundamentals. On the other hand, the long-term components show conitegrating relationship with only …

We investigate the behavior of a threshold model for the spreading of fads and similar phenomena in society. The model … variety of sizes and life-lengths of the fads — what one sees in real-world social and economical systems. …

This paper tests between fads and bubbles using a switching regression to distinguish between competing models. Two … main features of the bubbles model distinguish it from the fads model. First, the bubbles model implies that returns are … which is consistent with the fads model even when we allow for variation in expected dividend growth rates and expected …