Irrational exuberance / Robert J. Shiller.

Format:

Book

Author/Creator:

Shiller, Robert J.

Language:

English

Subjects (All):

Stocks--United States.

Stocks.

Real property--Prices.

United States.

Stock exchanges--United States.

Stock exchanges.

Stocks--Prices--United States.

Stocks--Prices.

Real property--Prices--United States.

Real property.

Risk.

Dow Jones industrial average.

Physical Description:

xxv, 304 pages : illustrations ; 24 cm

Edition:

Second edition.

Place of Publication:

Princeton, N.J. : Princeton University Press, [2005]

Summary:

In this timely and prescient update of his celebrated 2000 bestseller, Irrational Exuberance, Robert Shiller returns to the topic that gained him international fame: market volatility. Shiller breaks new ground in this second edition by laying out in even clearer and starker terms the market excesses that continue to destabilize the economy and disrupt our lives.

Having predicted the stock market collapse that began just one month after the first edition was published, he now expands the book to cover other markets that have become volatile, particularly the recently red-hot housing market. He includes a full chapter on domestic and international housing prices in historical perspective.

Shiller amasses impressive evidence to support his argument that the recent housing market boom bears many similarities to the stock market bubble of the late 1990s, and may eventually be followed by declining home prices for years to come. After stocks plummeted when the bubble burst in 2000, investors moved their money into housing. This precipitated the inflated real estate prices not only in America but around the world, Shiller maintains. Hence, irrational exuberance did not disappear-it merely reappeared in other settings.

Contents:

1 The Stock Market in Historical Perspective 1

2 The Real Estate Market in Historical Perspective 11

Part 1 Structural Factors

3 Precipitating Factors: The Capitalist Explosion, the Internet, and Other Events 31

4 Amplification Mechanisms: Naturally Occurring Ponzi Processes 56

Part 2 Cultural Factors

5 The News Media 85

6 New Era Economic Thinking 106

7 New Eras and Bubbles around the World 132

Part 3 Psychological Factors

8 Psychological Anchors for the Market 147

9 Herd Behavior and Epidemics 157

Part 4 Attempts to Rationalize Exuberance

10 Efficient Markets, Random Walks, and Bubbles 177

11 Investor Learning-and Unlearning 195

Part 5 A Call to Action

12 Speculative Volatility in a Free Society 207.

Notes:

Includes bibliographical references (pages 231-286) and index.

ISBN:

0691123357

OCLC:

56807021