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We use a Diamond/Dybvig-based model with two banks operating in separate regions connected by a common asset market in which banks and sophisticated depositors invest. We study the effect of a potential run (crisis) and subsequent fire sales on the asset price in both the crisis and no-crisis...
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Economists broadly define financial asset price bubbles as episodes in which prices rise with notable rapidity and … attempted to study and interpret bubbles through the prisms of rational expectations, efficient markets, equilibrium, arbitrage … explains how and why bubbles (and crashes) evolve and are defined, measured, and compared. This book develops a new and …
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Economists broadly define financial asset price bubbles as episodes in which prices rise with notable rapidity and … attempted to study and interpret bubbles through the prisms of rational expectations, efficient markets, equilibrium, arbitrage … explains how and why bubbles (and crashes) evolve and are defined, measured, and compared. This book develops a new and …
Persistent link: https://www.econbiz.de/10012793262
"The Chinese economy appears destined for failure, the financial bubble forever in peril of popping, the real estate sector doomed to collapse, the factories fated for bankruptcy. Banks drowning in bad loans. An urban landscape littered with ghost towns of empty property. Industrial zones...
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