We propose an extension of the class of rational expectations bubbles (REBs) to the more general rational beliefs … beliefs can thus account for speculative bubbles, without the need for irrational agents or limits to arbitrage. Many of the … shortcomings of REBs that make rational bubbles implausible can be overcome once we relax the ergodicity requirement. In particular …

crash (and rally) discrete jump distributions associated with positive (and negative) bubbles. We assume that crashes tend …, which has been previously proposed as a general definition of bubbles. Our bubble model also allows for a sequence of small …

Using data for six metropolitan housing markets in three countries, this paper provides a comparison of methods used to … measure house price bubbles. We use an asset pricing approach to identify bubble periods retrospectively and then compare … ability to identify bubbles as they form. In view of the complexity of the asset pricing approach, we conclude that a simple …

We analyze a controlled price formation experiment in the laboratory that shows evidence for bubbles. We calibrate two … models that demonstrate with high statistical significance that these laboratory bubbles have a tendency to grow faster than …

during the bubble generation. We apply this new model to two famous Chinese stock bubbles, from August 2006 to October 2007 … of the 2008 financial crisis. financial bubbles, rational expectations, positive feedback, factor model, diversification …

. We discuss these empirical patterns in light of theoretical housing search models, and provide support for the hypothesis … of the correction when the market enters the bust phase of the housing cycle …

critical times of historical housing price bubbles in the U.S., Hong Kong, U.K. and Canada. Second, the LPPLS detection methods …We introduce a novel quantitative methodology to detect real estate bubbles and forecast their critical end time, which … we apply to the housing markets of China's major cities. Building on the Log-Periodic Power Law Singular (LPPLS) model of …

We have analyzed the risks of possible development of bubbles in Switzerland's residential real estate market. The data … there are 11 critical districts that exhibit signatures of bubbles, and seven districts where bubbles have already burst …