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Are there rational speculative bubbles in Asian stock markets?

Research output: Journal Publications and ReviewsRGC 21 - Publication in refereed journalpeer-review

Abstract

Six Asian stock markets (Hong Kong, Japan, Korea, Malaysia, Thailand and Taiwan) and the U.S. stock market are evaluated for evidence of rational speculative bubbles using two types of tests. First, the duration dependence and conditional skewness tests of are used on the complete time series of returns. Second, explosiveness tests are applied to specific episodes of apparent bubbles. In general, the Asian stock returns exhibit some unusual characteristics, but these characteristics do not conform to the predictions of the rational speculative bubbles model.
Original languageEnglish
Pages (from-to)125-151
JournalPacific Basin Finance Journal
Volume6
Issue number1-2
DOIs
Publication statusPublished - May 1998
Externally publishedYes

Bibliographical note

Publication details (e.g. title, author(s), publication statuses and dates) are captured on an “AS IS” and “AS AVAILABLE” basis at the time of record harvesting from the data source. Suggestions for further amendments or supplementary information can be sent to [email protected].

Funding

The Harold F. Silver Fund at BYU provided financial support for databases and research assistants. G.M. and S.T. received financial support from the Goldman Sachs and the Driggs fellowships, respectively.

Research Keywords

  • Asian stocks
  • Bubbles
  • C52
  • Duration dependence
  • F30
  • G14
  • G15
  • Market crash

Policy Impact

  • Cited in Policy Documents

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