Speculative Bubble Burst

Hyejin Cho

MPRA Paper from University Library of Munich, Germany

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.

Keywords: externalities; speculative bubbles; heterogeneous beliefs; overconfidence; speculative bubble burst; equilibrium with inertia (search for similar items in EconPapers)
JEL-codes: D01 D52 D62 D84 (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:72531

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