speculative bubbles

Miguel A. Iraola and Manuel S. Santos
From The New Palgrave Dictionary of Economics, Second Edition, 2008
Edited by Steven N. Durlauf and Lawrence E. Blume
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Abstract

We review some work on speculative bubbles on asset prices. Some empirical evidence suggests that asset prices fluctuate more than their fundamental values, and so asset pricing bubbles do occur. Empirical tests on bubbles are inconclusive. Also, most commonly used models in macroeconomics and finance can generate bubbles only under rather specialized assumptions.
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How to cite this article

Iraola, Miguel A. and Manuel S. Santos. "speculative bubbles." The New Palgrave Dictionary of Economics. Second Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2008. The New Palgrave Dictionary of Economics Online. Palgrave Macmillan. 22 May 2017 <http://www.dictionaryofeconomics.com/article?id=pde2008_S000205> doi:10.1057/9780230226203.1589

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