1. Economic Price Bubbles
... used to determine the presence of housing bubbles and what are the shortcomings of those methods? It would seem that economists define the term "asset price bubble" in a number of ways to varying degrees of success. Evanoff et al. define a bubble existing "when the market price of an asset exceeds its price determined by fundamental factors by a significant amount ... for a prolonged period".1 This definition although seemingly certain is very vague in it's nature. It begs the questions, how long is a prolonged period, by how ... much is the asset's fundamental value exceeded? In their...
- Word Count: 951
- Approx Pages: 4
- Grade Level: Undergraduate