This paper employs a combination of unit root tests and fractional integration technique to test for rational bubbles … in Bombay Stock Exchange (BSE). The results in the paper strongly support evidence of rational bubbles in BSE. Evidence … of rational bubbles in BSE reflect consistent divergence of stock prices from stocks fundamental values. Moreover, the …

, we ask the following question: As to what extent are speculative bubbles predictable during a financial crisis? Knowledge … bubbles during the 2008–2009 US subprime crisis. The data used in the study are daily SENSEX values (i.e., combination of … in the crisis index (as put together by the authors) in the Indian context. Interestingly, for India, such a speculative …

diverse beliefs, strategies, and knowledge. This study examines the validity of rational bubbles in stock market prices … indicate that these markets experienced bubbles at various points, often followed by bursts. These bubbles coincided with … contributed to the occurrence of bubbles. Three key policy options are proposed to address bubbles in the studied markets …