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Speculative Bubble Burst

Author

Listed:
  • Hyejin Cho

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

Central to market fundamentals are three ideas: (1) Nominal money (2) Dividend (3) Existing stock. In connection with the cumulative dividend stream criterion of fundamental and noise movement, the conception of sequentially stable Markov process is grounded on the theory of bubbles. This paper firstly embodies the origin of speculative bubble burst with overconfidence. Then, unique equilibrium with inertia is re-illuminated by the overconfidence.

Suggested Citation

  • Hyejin Cho, 2015. "Speculative Bubble Burst," Working Papers hal-01184540, HAL.
    • Handle: RePEc:hal:wpaper:hal-01184540
    Note: View the original document on HAL open archive server: https://hal.science/hal-01184540
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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