This paper proposes a model to estimate the dynamic psychological anchor and adjustment speed of investors in stock markets. By employing covariate-dependent threshold settings in regression kink models, we identify the changing psychological anchor and how quickly investors adapt to a target...

This paper surveys the twentieth century booms and crashes in the American stock market, focusing on a comparison of the two most similar events in the 1920s and 1990s. In both booms, claims were made that they were the consequence a %u201Cnew economy%u201D or %u201Cirrational exuberance.%u201D...

This paper surveys the twentieth century booms and crashes in the American stock market, focusing on a comparison of the two most similar events in the 1920s and 1990s. In both booms, claims were made that they were the consequence a "new economy" or "irrational exuberance." Neither boom can be...