A new stock-price bubble with stochastically deflating trajectories

Rotermann Benedikt, Wilfling Bernd

Zusammenfassung

We propose a new, rational stock-price bubble that is able to generate recurringly explosive and stochastically deflating trajectories. Our flexible bubble process entails stock-price volatility dynamics that are consistent with real-world data. To demonstrate this, we fit our bubble specification to NASDAQ data and analyze the volatility dynamics.

Schlüsselwörter

Present-value model; Evans bubble; incompletely bursting bubble; stock-; price volatility; particle-filter estimation

Zitieren als

Rotermann, B., & Wilfling, B. (2018). A new stock-price bubble with stochastically deflating trajectories. Applied Economics Letters, 25(15), 1091–1096.

Details

Publikationstyp
Forschungsartikel (Zeitschrift)

Begutachtet
Ja

Publikationsstatus
Veröffentlicht

Jahr
2018

Fachzeitschrift
Applied Economics Letters

Band
25

Ausgabe
15

Erste Seite
1091

Letzte Seite
1096

Sprache
Englisch

ISSN
1350-4851

DOI