|
|||||
|
|
Asset price bubbles: a survey |
|
| Authors: | Anna Scherbina Bernd Schlusche |
| Institution: | 1. Graduate School of Management , University of California , Davis, One Shields Avenue, Davis , CA , 95616 , USA ascherbina@ucdavis.edu;3. Board of Governors of the Federal Reserve System , 20th Street and Constitution Avenue NW, Washington , DC , 20551 , USA |
| Abstract: | Why do asset price bubbles continue to appear in various markets? What types of events give rise to bubbles and why do arbitrage forces fail to quickly burst them? Do bubbles have real economic consequences and should policy makers do more to prevent them? This paper provides an overview of recent literature on bubbles, with significant attention given to behavioral models and rational models with frictions. The latest U.S. real estate bubble is described in the context of this literature. |
| Keywords: | Asset pricing Behavioral finance Asset bubbles Behavioral models |