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Theoretical aspects of appearing of bubbles in economy

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  • Pronoza Pavlo V.

    (Kharkiv National University of Economics)

Abstract

The article considers theoretical aspects of appearing of bubbles in economy. It analyses vies of scientists regarding the essence of this phenomenon and, with the help of content analysis, specifies the essence of the bubble notion in economy. It considers main stages of appearance of such bubbles. It offers classification of their types. It analyses pre-requisites of appearance of bubbles in economy and their features. It considers main existing approaches to detection and modelling appearance of bubbles. It proves that bubbles negatively influence economy of the countries, that is why, the problem of their detection and prevention is one of the central problems in the process of development of policy of state regulation of economy.

Suggested Citation

  • Pronoza Pavlo V., 2014. "Theoretical aspects of appearing of bubbles in economy," The Problems of Economy, RESEARCH CENTRE FOR INDUSTRIAL DEVELOPMENT PROBLEMS of NAS (KHARKIV, UKRAINE), issue 1, pages 149-157.
    • Handle: RePEc:idp:redpoe:y:2014:i:1:p:149_157
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    References listed on IDEAS

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    1. Froot, Kenneth A & Obstfeld, Maurice, 1991. "Intrinsic Bubbles: The Case of Stock Prices," American Economic Review, American Economic Association, vol. 81(5), pages 1189-1214, December.
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