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 ... , in the summing up section of their paper it is stated, "we still do not have a definition of an asset bubble". Schiller in his paper suggests, "Economists define a bubble as a rise in price that cannot be explained by fun...
- Word Count: 951
- Approx Pages: 4
- Grade Level: Undergraduate