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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