Asset Price Bubbles A Selective Survey

Why do asset price bubbles continue to appear in various markets? This paper provides an overview of recent literature on bubbles, with significant attention given to behavioral models and rational models with frictions. Unlike the standard rational models, the new literature is able to model the co...

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Bibliographic Details
Main Author: Scherbina, Anna
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2013
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a Asset Price Bubbles  |b A Selective Survey  |c Anna Scherbina 
260 |a Washington, D.C.  |b International Monetary Fund  |c 2013 
300 |a 41 pages 
651 4 |a United States 
653 |a Economic & financial crises & disasters 
653 |a Inflation 
653 |a Institutional Investors 
653 |a Real Estate 
653 |a Stocks 
653 |a Pension Funds 
653 |a Financial Economics: General 
653 |a Financial crises 
653 |a Financial institutions 
653 |a Financial Instruments 
653 |a Deflation 
653 |a Asset bubbles 
653 |a Housing Supply and Markets 
653 |a Housing 
653 |a General Financial Markets: General (includes Measurement and Data) 
653 |a Asset prices 
653 |a Property & real estate 
653 |a Price Level 
653 |a Non-bank Financial Institutions 
653 |a Investments: Stocks 
653 |a Prices 
653 |a Macroeconomics 
653 |a Real Estate Markets, Spatial Production Analysis, and Firm Location: General 
653 |a Investment & securities 
653 |a Financial Risk Management 
653 |a Real estate prices 
653 |a Housing prices 
653 |a Financial Crises 
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520 |a Why do asset price bubbles continue to appear in various markets? This paper provides an overview of recent literature on bubbles, with significant attention given to behavioral models and rational models with frictions. Unlike the standard rational models, the new literature is able to model the common characteristics of historical bubble episodes and offer insights for how bubbles are initiated and sustained, the reasons they burst, and why arbitrage forces do not routinely step in to squash them. The latest U.S. real estate bubble is described in the context of this literature