Gallegati, Mauro; Palestrini, Antonio; Rosser, J. Barkley - In: Macroeconomic Dynamics 15 (2011) 01, pp. 60-79
We investigate how stochastic asset price dynamics with herding and financial constraints explains the presence of a <italic>period of financial distress</italic> (PFD) following the peak and preceding the crash of a bubble [Charles P. Kindleberger, <italic>Manias, Panics, and Crashes: A History of Financial Crisis</italic>, 4th...