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The Late 1970's Bubble in Dutch Collectible Postage Stamps

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  • Franses, Ph.H.B.F.
  • Knecht, W.

Abstract

Collectible postage stamp prices in the Netherlands witnessed a bubble in the late 1970’s, while prices rapidly floored in the mid 1980’s. We analyze 500 individual stamps prices (instead of a single index) to examine if the bubble could somehow have been predicted and whether there were early warning signals. Also, we study whether the characteristics of these stamps mediated the bubble and the price landing afterwards. Scarcity and initial price levels seem to have predictive value in various dimensions. Implications for recognizing bubbles in other asset prices are discussed.

Suggested Citation

  • Franses, Ph.H.B.F. & Knecht, W., 2012. "The Late 1970's Bubble in Dutch Collectible Postage Stamps," Econometric Institute Research Papers EI 2013-02, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    • Handle: RePEc:ems:eureir:38700
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    References listed on IDEAS

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    1. Peter C. B. Phillips & Yangru Wu & Jun Yu, 2011. "EXPLOSIVE BEHAVIOR IN THE 1990s NASDAQ: WHEN DID EXUBERANCE ESCALATE ASSET VALUES?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 52(1), pages 201-226, February.
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    Cited by:

    1. Fromentin, Vincent & Pecchioli, Bruno & Moroz, David, 2024. "Time-varying causality among whisky, wine, and equity markets," Finance Research Letters, Elsevier, vol. 63(C).

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    More about this item

    Keywords

    forecasting; positive feedback; postage stamps; price bubbles;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • Z11 - Other Special Topics - - Cultural Economics - - - Economics of the Arts and Literature

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