Rational bubbles. Theoretical basis, economic relevance, and empirical evidence with a special emphasis on the German stock market
type: Item
instance of: scholarly article
title: Rational bubbles. Theoretical basis, economic relevance, and empirical evidence with a special emphasis on the German stock market
zbMATH Open document ID: 0874.90018
DOI: 10.1007/978-3-642-59181-5
author: Matthias Salge
published in: Lecture Notes in Economics and Mathematical Systems
publication date: 1997-06-23T00:00:00Z
review text: This monograph is focused on the possibility of bubbles in partial markets and tries to examine their existence empirically. The intention is threefold: First to broaden the set of bubbles discussed in literature so far by providing a theoretical framework for deriving bubbles from simple stochastic processes. Second to clarify to relevance of bubbles by discussing the three most popular applications of bubbles in economic theory, i.e. bubbles on capital markets, on foreign exchange markets and in hyperinflationary periods. Third, possible testing strategies for gaining evidence of the existence of bubbles are described, which are then applied to several bubble specifications on the German stock market.
Mathematics Subject Classification ID: 91-02
Mathematics Subject Classification ID: 91G99
Mathematics Subject Classification ID: 91B62
zbMATH DE Number: 1025601
zbMATH Keywords: rational bubbles
zbMATH Keywords: capital markets
zbMATH Keywords: foreign exchange markets
zbMATH Keywords: hyperinflation
zbMATH Keywords: bubbles in partial markets
zbMATH Keywords: simple stochastic processes
zbMATH Keywords: German stock market
reviewed by: Jostein Lillestøl
MaRDI profile type: Publication
full work available at URL: https://doi.org/10.1007/978-3-642-59181-5
OpenAlex ID: W4214487660
description: scientific article; zbMATH DE number 1025601