Why do speculative bubbles gather steam? some international evidence

Renatas Kizys, C. Pierdzioch

    Research output: Contribution to journalArticlepeer-review

    Abstract

    We combined tests for speculative bubbles in stock markets with a crosscountry regression framework to analyse whether economic and institutional variables can be identified that make speculative bubbles in stock markets more likely to occur. The list of variables that we found to have a significant effect on the probability that a speculative bubble arises includes an index of shareholder rights (with a negative sign), the share of assets of foreign-owned banks in total banking assets (with a positive sign) and the ratio of gross private saving to gross private disposable income (with a positive sign).
    Original languageEnglish
    Pages (from-to)1089-1093
    Number of pages5
    JournalApplied Economics Letters
    Volume19
    Issue number11
    DOIs
    Publication statusPublished - Jul 2012

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