Stock Price Bubbles

ISBN-13: 9783639166521 / Angielski / Miękka / 2009 / 120 str.

Clemens Eder

Opis

Bubbles are recurrent economic phenomena thatfrequently have far-reaching consequences for wholeeconomies, as was the case for the "dot-com bubble"at the turn of the century or the recent real estatebubbles. Clemens Eder examines whether stock pricebubbles actually exist and analyzes typical bubblesepisodes from the distant and recent past. The bookgoes on to present the major types of explanatorymodels: Traditional approaches are based on rationalexpectations and symmetric information, demonstratingthat bubbles can occur even under these restrictiveassumptions. Newer models, on the other hand, allowfor irrational investors and/or asymmetricinformation. Focusing on "noise trading" approaches,several factors are identified that can lead to thecreation of bubbles. Finally, alternativeexplanations derived from fields like catastrophetheory or experimental economics are presented. Thebook does not merely describe these models, butcritically analyzes, compares and evaluates them. Itthus represents an in-depth introduction to stockprice bubbles targeted at students, teachers andresearchers who are interested in capital markettheory and finance.

O autorze

Clemens Eder studied International Business at the Vienna
University of Economics and Business Administration and at ESADE
Barcelona. He obtained the CEMS Master s in International
Management degree and received his university s Talenta award
for his thesis. Currently, he is working in Corporate Accounting
for OMV Aktiengesellschaft in Vienna.