1 option
Shakeouts and Market Crashes / Alessandro Barbarino, Boyan Jovanovic.
- Format:
- Book
- Author/Creator:
- Barbarino, Alessandro.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w10556.
- NBER working paper series no. w10556
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2004.
- Summary:
- Stock-market crashes tend to follow run-ups in prices. These episodes look like bubbles that gradually inflate and then suddenly burst. We show that such bubbles can form in a Zeira-Rob type of model in which demand size is uncertain. Two conditions are sufficient for this to happen: A declining hazard rate in the prior distribution over market size and a positively sloped supply of capital to the industry. For the period 1971-2001 we fit the model to the Telecom sector.
- Notes:
- Print version record
- June 2004.
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.