Asset Bubbles in Shipping? An Analysis of Recent History in the Drybulk Market

Roar Adland, Haiying Jia and Siri Strandenes
Additional contact information
Roar Adland: [1] Dalian Maritime University, Dalian, P.R. China [2] Clarkson Fund Management Ltd., London, UK
Haiying Jia: Cass Business School, City University, London, UK

Maritime Economics & Logistics, 2006, vol. 8, issue 3, 223-233

Abstract: The purpose of this paper is to investigate the hypothesis that the freight market boom in the drybulk freight market between 2003 and 2005 caused asset values in the second-hand market to deviate from underlying fundamentals. We test the instantaneous equilibrium relationship between the markets for second-hand ships, newbuildings and freight in a Vector Error Correction Model (VECM) framework. We also estimate and account for the time-varying delivery lag in the newbuilding market. Our empirical results suggest that the second-hand market was closely cointegrated with the fundamental freight and newbuilding market with no evidence of a short-term asset ‘bubble’. Maritime Economics & Logistics (2006) 8, 223–233. doi:10.1057/palgrave.mel.9100162

Date: 2006
References: Add references at CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://www.palgrave-journals.com/mel/journal/v8/n3/pdf/9100162a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/mel/journal/v8/n3/full/9100162a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:marecl:v:8:y:2006:i:3:p:223-233

Ordering information: This journal article can be ordered from
http://www.springer. ... nt/journal/41278/PS2

Access Statistics for this article

Maritime Economics & Logistics is currently edited by Hercules E. Haralambides

More articles in Maritime Economics & Logistics from Palgrave Macmillan, International Association of Maritime Economists (IAME) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().