Munich Personal RePEc Archive

Speculative Bubble Burst

cho, hyejin (2016): Speculative Bubble Burst.

[img]
Preview
PDF
MPRA_paper_72531.pdf

Download (472kB) | Preview

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.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.