(and rally) discrete jump distributions associated with positive (and negative) bubbles. The RE condition implies that the …

financial crisis. The effect of bubbles on stock and housing markets and their transmission to the domestic real economy and the …

Financial bubbles are subject to debate and controversy. However, they are not well understood and are hardly ever … specific traces, bubbles may be recognised in advance: that is, before they burst. In this paper, we will explain the mechanism … behind financial bubbles in an intuitive way. We will show how the log-periodic power law emerges spontaneously from the …

Building on the notion that bubbles are transient self-fulfilling prophecies created by positive feedback mechanisms …

We present a self-consistent model for explosive financial bubbles, which combines a mean-reverting volatility process … correctly identifies the bubbles ending in Oct. 1987, in Oct. 1997, in Aug. 1998 and the ITC bubble ending on the first quarter … diagnostic for the duration of bubbles: applied to the period before Oct. 1987 crash, there is clear evidence that the bubble …

) model of endogenous asset price bubbles to monitor crash risk. The model is calibrated to 15 years market history for five …

This paper uncovers a novel mechanism by which bubbles crowd in capital investment. If capital is initially depressed … channel is a robust phenomenon that occurs along the entire time path after bubbles are injected. …

This paper uncovers a novel mechanism by which bubbles crowd in capital investment. If capital is initially depressed … channel is a robust phenomenon that occurs along the entire time path after bubbles are injected. …

We develop a parsimonious model of bubbles based on the assumption of imprecisely known market depth. In a speculative … possibility of bubbles depending on the risk-free rate, uncertainty about market depth, and traders’ degree of leverage. This … allows us to discuss several policy measures. Bubbles always reduce aggregate welfare. Among others, certain monetary policy …

This paper analyzes the effects of several policy instruments to mitigate financial bubbles generated in the banking … policy instruments in counteracting financial bubbles. We find that an endogenous capital requirement reduces the impact of a …