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| Author: | DAVID DeROSA |
| Category: | Economy And Money [Edit] |
| Language: | English |
| Pages: | 328 |
| File Size: | 3.07 MB |
| Extension: | |
| Creation Date: | 27 Mar 2021 |
| Rank: | 533,497 No 1 most popular |
| Short link: | Copy |
| More books like this book | |
The Publisher and not the author Book BURSTING THE BUBBLE Rationality In A Seemingly Irrational Market .
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This book reviews and evaluates the academic literature as well as some popular investment books on the possible existence of speculative bubbles in the
stock market. The main question is whether there is convincing empirical
evidence that bubbles exist. A second question is whether the theoretical concepts that have been advanced for bubbles make them plausible.
If bubbles exist, they would pose a serious challenge to neoclassical
finance. Bubbles would contradict the ideas that markets are rational or work
in an informationally efficient manner. That’s what makes the topic of bubbles
interesting.
The reader will discover that I am skeptical that bubbles actually exist.
But I do not think I or anyone else will ever be able conclusively to prove that
there has never been a bubble. From studying the literature and from reading
history, I find that many famous purported bubbles reflect inaccurate history
or mistakes in analysis, or simply cannot be shown to have existed. In other
instances, bubbles might have existed. But in each of those cases, there are
credible rational explanations. And evidence is good that, even if bubbles do
exist, they are not of great importance to understanding the stock market.
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