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To explore why bubbles frequently emerge in the experimental asset market model of Smith, Suchanek and Williams (1988), we vary the fundamental value process (constant or declining) and the cash-to-asset value-ratio (constant or increasing). We observe high mispricing in treatments with a...
Persistent link: https://www.econbiz.de/10010294824
quickly expansion of credit leading to the process of bubble formation in market for vehicles that led to the need for the …
Persistent link: https://www.econbiz.de/10011372157
We investigate the impact of trader and cash inflow on bubble formation in asset markets with a novel design featuring …
Persistent link: https://www.econbiz.de/10011382721
We explore the ability of a macroprudential policy instrument to dampen the consequences of equity mispricing (a bubble …) and the correction thereof (the bubble bursting), as well as the consequences for real activity in a production economy … sentiment) become biased upwards/downwards. Economic activity in equilibrium is influenced by the bubble size. The presence of …
Persistent link: https://www.econbiz.de/10011605596
In this paper, the authors set out to date-stamp periods of US housing price explosivity for the period 1830-2013. They make use of several robust techniques that allow them to identify such periods by determining when prices start to exhibit explosivity with respect to its past behaviour and...
Persistent link: https://www.econbiz.de/10011674075
empirical studies have tested for this bubble phenomenon. This paper presents previously unused data on the aggregate number of … newly opened brokerage accounts in China and tests the role of new investors in bubble formation. I find that new investors …
Persistent link: https://www.econbiz.de/10012028611
Abstract The recent U.S. house price bubble and the subsequent deep financial crisis have renewed the interest in … bubble was not a homogeneous event since regional starting points range from 1996 to 2002.  …
Persistent link: https://www.econbiz.de/10014619321
this context, it is shown that the notion of bubble" does not matter for policy purposes, and that the current regulatory …
Persistent link: https://www.econbiz.de/10010276902
Economic hardship is strongly reflected by the housing market. It is the concern of much research, but its analysis is often obstructed by insufficient lagged data. This paper evaluates search intensity for hardship letter from Google Insights to detect ensuing mortgage delinquencies. Such...
Persistent link: https://www.econbiz.de/10010278657
bubble in any stock market (bourse) across the geographical boundaries. This study examines forty two bourses (representing … embedded volatility, herd behaviour and nascent bubble. Overall the volatility distribution has been found to be Gaussian in … percent of indices under consideration showed traces of mild herd as well as bubble. The same indices were all found to be …
Persistent link: https://www.econbiz.de/10014558389