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What risks do asset price bubbles pose for the economy? This paper studies bubbles in housing and equity markets in 17 countries over the past 140 years. History shows that not all bubbles are alike. Some have enormous costs for the economy, while others blow over. We demonstrate that what makes...
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What risks do asset price bubbles pose for the economy? This paper studies bubbles in housing and equity markets in 17 countries over the past 140 years. History shows that not all bubbles are alike. Some have enormous costs for the economy, while others blow over. We demonstrate that what makes...
Persistent link: https://www.econbiz.de/10013014986
of individual default risk may facilitate risk-taking. In equilibrium, credit-constrained borrowers may optimally choose …
Persistent link: https://www.econbiz.de/10012936783
appealing downside risk (DR) framework suggested by Estrada (2008), which applies a similar optimization algorithm as the MV …
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