Asset float and speculative bubbles
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Asset float and speculative bubbles

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Published by National Bureau of Economic Research in Cambridge, Mass .
Written in English

Subjects:

  • Stocks -- Economic aspects

Book details:

Edition Notes

StatementHarrison Hong, Jose Scheinkman, Wei Xiong.
SeriesNBER working paper series -- no. 11367., Working paper series (National Bureau of Economic Research) -- working paper no. 11367.
ContributionsScheinkman, José Alexandre., Xiong, Wei, 1975-, National Bureau of Economic Research.
The Physical Object
Pagination50 p. ;
Number of Pages50
ID Numbers
Open LibraryOL17626627M
OCLC/WorldCa60572507

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Asset Float and Speculative Bubbles expectations generate trade. Importantly, investors anticipate changes in asset supply over time due to potential insider selling. When investors have heterogeneous beliefs due to overconfidence and they face short-sales constraints, the price of an asset exceeds fundamental value for two reasons. Asset Float and Speculative Bubbles. Journal of Finance, Forthcoming Posted: 29 Aug Date Written: Aug Abstract. We model the relationship between float (the tradable shares of an asset) and stock price bubbles. Investors trade a stock that initially has a limited float because of insider lock-up restrictions but the tradable Cited by:   Asset Float and Speculative Bubbles. Journal of Finance, Forthcoming Posted: 29 Aug You are currently viewing this paper. Abstract. We model the relationship between asset float (tradeable shares) and speculative bubbles. Investors with heterogeneous beliefs and short-sales constraints trade a stock with limited float because of insider Cited by:   In this book Scheinkman provides a relatively simple model for thinking about speculative bubbles in asset prices It could certainly be taught to graduate students and to upper-year undergraduates. -- GLENN OTTO, UNSW Business School, Sydney, NSW, Australia, Economic RecordReviews: 3.

  Speculative Bubble: A speculative bubble is a spike in asset values within a particular industry, commodity, or asset class. A speculative bubble is usually caused by exaggerated expectations of. establish the case that bubbles exist in asset prices." This paper contends that speculative bubbles do occur, based upon historical experience, and that these bubbles are precipitated by a large increase in the supply of money. This monetary intervention creates situations that manifest themselves in ma1investment, i.e., speculative bubbles. minant of asset prices is the amount of credit that is provided for speculative investment. Financial liber-alization, by expanding the volume of credit for speculative investments, can interact with the agency problem and lead to a bubble in asset prices. An alternative theory of financial crises has been suggested by McKinnon and Pill (   Asset Float and Speculative Bubbles Asset Float and Speculative Bubbles HONG, HARRISON; SCHEINKMAN, JOSÉ; XIONG, WEI ABSTRACT We model the relationship between asset float (tradeable shares) and speculative bubbles. Investors with heterogeneous beliefs and short‐sales constraints trade a stock with limited float because of insider .

Download Citation | Asset Float and Speculative Bubbles | We model the relationship between float (the tradable shares of an asset) and stock price bubbles. Investors trade a stock that initially. We model the relationship between asset float (tradeable shares) and speculative bubbles. Investors trade a stock with limited float because of insider lock-ups. They have heterogeneous beliefs due to overconfidence and face short-sales constraints. A bubble arises as price overweighs optimists Cited by: Overconfidence and Speculative Bubbles Jose´ A. Scheinkman and Wei Xiong Princeton University Motivated by the behavior of asset prices, trading volume, and price volatility during episodes of asset price bubbles, we present a contin-uous-time equilibrium model in which overconfidence generates dis-. Get this from a library! Asset float and speculative bubbles. [Harrison G Hong; José Alexandre Scheinkman; Wei Xiong; National Bureau of Economic Research.] -- We model the relationship between asset float (tradeable shares) and speculative bubbles. Investors trade a stock with limited float because of insider lock-ups. They have heterogeneous beliefs due.