We develop a parsimonious model of bubbles based on the assumption of imprecisely known market depth. In a speculative … possibility of bubbles depending on the risk-free rate, uncertainty about market depth, and traders’ degree of leverage. This … allows us to discuss several policy measures. Bubbles always reduce aggregate welfare. Among others, certain monetary policy …

Reviewing the definition and measurement of speculative bubbles in context of contagion, this paper analyses the DotCom …. Even it is astonishing, that the contagion is lower during price bubbles, the main finding indicates the presence of …

and that started to burst in June 2015. The analysis is based on (i) the economic theory of rational expectation bubbles …

By combining (i) the economic theory of rational expectation bubbles, (ii) behavioral finance on imitation and herding …-periodic power law (LPPL) model has been developed as a flexible tool to detect bubbles. The LPPL model considers the faster … diagnostic of bubbles. It embodies a positive feedback loop of higher return anticipations competing with negative feedback …

is able to account for the development of endogenous bubbles and crashes. We distinguish three different regimes …’ opinions are idiosyncratic and no bubbles emerge. Around the critical value of the O(n) vector model, cross sectionally … asynchronous bubbles emerge. Above the critical value, small random price fluctuations may be amplified by noise traders herding …

the dot-com peak 20 years ago. In both instances, a very broad subset of stocks became so highly valued that speculation …, drawn from a book in progress, examines the history of stock markets for comparable pure price-chasing bubbles, finding nine … way down - of these greatest asset bubbles in human history. When one applies this framework to the current US stock …