Asset Price Bubbles : A Selective Survey / Anna Scherbina.

Format:

Book

Government document

Author/Creator:

Scherbina, Anna.

Series:

IMF Working Papers; Working Paper ; No. 2013/045

IMF Working Papers

Language:

English

Subjects (All):

Financial crises.

Arbitrage.

Physical Description:

1 online resource (42 p.)

Place of Publication:

Washington, D.C. : International Monetary Fund, 2013.

Language Note:

English

Summary:

Why do asset price bubbles continue to appear in various markets? This paper provides an overview of recent literature on bubbles, with significant attention given to behavioral models and rational models with frictions. Unlike the standard rational models, the new literature is able to model the common characteristics of historical bubble episodes and offer insights for how bubbles are initiated and sustained, the reasons they burst, and why arbitrage forces do not routinely step in to squash them. The latest U.S. real estate bubble is described in the context of this literature.

Contents:

Cover; Contents; I. Introduction; II. Bubbles through History; III. Rational Models; IV. The New Generation of Rational Models; V. Behavioral Models; A. How are Bubbles Initiated?; B. Why do Bubbles Burst or Deflate?; C. Trading Volume; D. Why are Bubbles not Arbitraged Away?; E. Bubbles in Experimental Settings; VI. The Subprime Mortgage Bubble; VII. Conclusion; References

Notes:

February 2013.

Includes bibliographical references.

Description based on online resource; title from PDF title page (ebrary, viewed September 26, 2014).

ISBN:

9781475514568

1475514565

9781589065901

1589065905

9781299395190

1299395198

9781475541021

1475541023