Financial Market Bubbles and Crashes: Features, Causes, and Effects

by Harold L. Vogel

Overview

Economists broadly define financial asset price bubbles as episodes in which prices rise with notable rapidity and depart from historically established asset valuation multiples and relationships. Financial economists have for decades attempted to study and interpret bubbles through the prisms of rational expectations, efficient markets, equilibrium, arbitrage, and capital asset pricing models, but they have not made much if any progress toward a consistent and reliable theory that explains how and why bubbles (and crashes) evolve and are defined, measured, and compared. This book develops a new and different approach that is based on the central notion that bubbles and crashes reflect urgent short-side rationing, which means that, as such extreme conditions unfold, considerations of quantities owned or not owned begin to displace considerations of price.

Product Details

ISBN-13:	9783030791841
Publisher:	Springer International Publishing
Publication date:	12/17/2021
Edition description:	Third Edition 2021
Pages:	579
Product dimensions:	6.10(w) x 9.25(h) x (d)

About the Author

Harold (Hal) L. Vogel was the senior entertainment industry analyst at Merrill Lynch and inducted into Institutional Investor magazine’s All-America Research Team Hall of Fame in 2011. Holder of a PhD in financial economics, he is also a chartered financial analyst (C.F.A.) and served as an adjunct professor at Columbia University’s Graduate School of Business. His books include Entertainment Industry Economics: A Guide for Financial Analysis (10^th edition 2020) and Travel Industry Economics: A Guide for Financial Analysis (4^th edition 2021). He currently heads an independent investment and consulting firm in New York City.

Table of Contents

Part I- Background
1. Introduction
2. Bubble Stories
3. Crash Stories
4. Money and Credit Features

Part II- Theories Past
5. Random Walks
6. Rationality Rules
7. Behavioral Beats

Part III- Theories Present and Future
8. Bubble Dynamics
9. Behavioral Risk Features
10. Estimating and Forecasting

Part IV- Round Up
11. Financial Asset Bubble Theory

What People are Saying About This

From the Publisher

“Financial Market Bubbles and Crashes (2^nd Edition) is as comprehensive a book on this subject as one could wish ... and the prose makes for breezy reading … Anyone interested in finance should own it.” (Robert R. Prechter, CEO, Elliot Wave International, USA)