search query: @indexterm economic analysis / total: 390
reference: 252 / 390
| Author: | Froot, K. A. Obstfeld, M. |
| Title: | Intrinsic bubbles: the case of stock prices |
| Journal: | American Economic Review
1991 : DEC, VOL. 81:5, p.1189-1214 |
| Index terms: | SHARE PRICES DIVIDENDS PRICING USA ECONOMIC ANALYSIS |
| Language: | eng |
| Abstract: | Several puzzling aspects of the behaviour of USA stock prices may be explained by the presence of a specific type of rational bubble that depends exclusively on aggregate dividends. This type of bubbles may be called "intrinsic" bubbles because they derive all of their variability from exogenous economic fundamentals and none from extraneous factors. Intrinsic bubbles provide a more plausible empirical account of derivations from present-value pricing than do the traditional examples of rational bubbles. Their explanatory potential comes partly from their ability to generate persistent derivations that appear to be relatively stable over long periods. |
SCIMA