Jiang, Zhi-Qiang; Zhou, Wei-Xing; Sornette, Didier; … - 2009
By combining (i) the economic theory of rational expectation bubbles, (ii) behavioral finance on imitation and herding … logperiodic power law (LPPL) model has been developed as a flexible tool to detect bubbles. The LPPL model considers the faster … diagnostic of bubbles. It embodies a positive feedback loop of higher return anticipations competing with negative feedback …