if there are "bubbles", they may not distort real behaviour if managers base investment decisions on fundamentals. Using … decisions on fundamentals despite stock market bubbles. Three types of collateral evidence reinforce this interpretation. We …

Our paper uses simulation methods to examine the size and power of regime-switching tests for bubbles. We find that … tests conservative; they understate the significance of the evidence of bubbles. Despite this, the tests display … considerable power to detect bubbles even when using the conservative asymptotic critical values. We also find that the frequency …

Our paper uses simulation methods to examine the size and power of regime-switching tests for bubbles. We find that … tests conservative; they understate the significance of the evidence of bubbles. Despite this, the tests display … considerable power to detect bubbles even when using the conservative asymptotic critical values. We also find that the frequency …

of a wider research entitled “BUBBLES AND INSTABILITY”, which is intended to try and clarify the reasons why the bubbles …, especially financial bubbles, are a current issue and one of the main aspects to be considered within these phenomena. The first … preview of this current document was published in the same collection: Bubbles and Instability: The State of the Art. Working …