Abstract
We review some work on speculative bubbles on asset prices. Some empirical evidence suggests that asset prices fluctuate more than their fundamental values, and so asset pricing bubbles do occur. Empirical tests on bubbles are inconclusive. Also, most commonly used models in macroeconomics and finance can generate bubbles only under rather specialized assumptions.
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Iraola, M.A., Santos, M.S. (2018). Speculative Bubbles. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_2555
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DOI: https://doi.org/10.1057/978-1-349-95189-5_2555
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