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RFS Advance Access originally published online on February 7, 2008
Review of Financial Studies 2008 21(1):11-17; doi:10.1093/rfs/hhn001
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© The Author 2008. Published by Oxford University Press on behalf of the Society for Financial Studies. All rights reserved. For permissions, please e-mail: journals.permissions@oxfordjournals.org.

Bubbles: Some Perspectives (and Loose Talk) from History

Maureen O'Hara
Johnson Graduate School of Management, Cornell University

Address correspondence to: Maureen O'Hara, Johnson Graduate School of Management, Cornell University, Ithaca, NY 14850; telephone: 607 255 2645; fax: 607 255 5993, e-mail: mo19{at}cornell.edu.

JEL Classification: G12, B0, E30


   Abstract

Bubbles are a topic of great importance and great controversy. This paper discusses alternative perspectives on the economic meaning and origin of bubbles. Drawing on historical approaches to bubbles, this article sets out a taxonomy of approaches used to explain the nature of bubbles. The paper also considers issues connected with the scientific thinking surrounding bubbles.


I would like to thank Utpal Bhattacharya, David Easley, Stephen Ross, and Matthew Spiegel for helpful comments.


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