mechanisms lead to price paths exhibiting three phases: initial underreaction, followed by overshooting (the bubble), and finally … fundamentals, which lasts only as the bubble builds up. When investors speculate, even mild diagnostic distortions generate … substantial bubbles …

mechanisms lead to price paths exhibiting three phases: initial underreaction, followed by overshooting (the bubble), and finally … fundamentals, which lasts only as the bubble builds up. When investors speculate, even mild diagnostic distortions generate … substantial bubbles …

We present an extrapolative model of bubbles. In the model, many investors form their demand for a risky asset by … about fundamentals can trigger large price bubbles. We analyze the patterns of cash-flow news that generate the largest … bubbles, the reasons why bubbles collapse, and the frequency with which they occur. The model also predicts that bubbles will …

We evaluate Eugene Fama's claim that stock prices do not exhibit price bubbles. Based on US industry returns 1926 … of these characteristics can help investors earn superior returns by timing the bubble. Results hold similarly in US and …

, held by both developers and households. This boom may turn out to be a housing bubble followed by a crash, yet that future …