Major bubble episodes are rare events. In this paper, we examine what factors might cause some asset price bubbles to …

We provide a theory to investigate the implications of time-varying bailout policy for rational bubbles in an infinite …-horizon production economy. In particular, we ask two questions. First, should the government bail out asset bubbles? Second, if yes, how … bubbles are vulnerable to market sentiment and resource-consuming. The systematic risk of bubble bursting causes both asset …

Major bubble episodes are rare events. In this paper, we examine what factors might cause some asset price bubbles to …

Major bubble episodes are rare events. In this paper, we examine what factors might cause some asset price bubbles to …

Galvanized by the claims of Greenwood et al. in Bubbles for Fama that “a sharp price increase of an industry portfolio …, people have not come up with ways of identifying bubbles”, we present significant evidence to the contrary of both statements … price growth qualified by LPPLS: (i) bubbles followed by a large drawdown or crash, and (ii) price catch-up followed by a …

Clientele-based theories explaining asset price bubbles are often difficult to test because the identities of investors …

builds up, during the run-up phase of crises and asset price bubbles, and increases when systemic risk materializes …

Using an agent-based model (ABM) with fundamentalists and chartists, prone to develop bubbles and crashes, we … demonstrate the usefulness of direct market intervention by a policy maker, documenting strong performance in preventing bubbles … bubbles by forming an expectation of the future return of the risky asset in the form of an exponential moving average of the …

bubbles for a certain setup of a feedback trader model. Moreover, similar studies very often face the criticism that chartists … might run out of money before the emergence of bubbles, as these studies typically analyze the role of chartists with …