Exuberance and social contagion

Orlando Gomes

Economics Bulletin, 2016, vol. 36, issue 3, 1705-1714

Abstract: Episodes of collective exuberance that recurrently hit the economy are, in this note, associated with sentiment propagation in a network of social relations. The pivotal role played by exuberant individuals will give place to a dynamic setting where limit cycles constitute the most plausible long-term outcome. Endogenous sentiment waves, with peaks and troughs of exuberance, are in this way identified in the context of a straightforward interaction scenario.

Keywords: Exuberance; Social interaction; Sentiment waves; Limit cycles; Neimark-Sacker bifurcation. (search for similar items in EconPapers)
JEL-codes: D7 E0 (search for similar items in EconPapers)
Date: 2016-09-03
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