We analyze a simple model of an asset market, in which a large rational trader interacts with ‘‘noise speculators’’ who seek short-run speculative gains, and become active following a prolonged episode of mispricing relative to the asset’s fundamental value. Themodel gives rise to price patterns such as bubble dynamics, positive short-run correlation and vanishing long-run correlation of price ...

The property market of Hong Kong is one of the most volatile in the world. This study attempts to investigate the proposition that the Hong Kong residential market is only driven by fundamentals. The investigation is based on a Markov switching present value model, which explicitly accounts for a rational speculative bubble. The estimates show that not only does the model capture the asymmetric...

Purpose The last decades have experienced increasingly integrated global political and economic dynamics ranging especially from the influence of exchange rates trade amid other sources uncertainties. purpose this study is to examine rate Brazil, Russia, India, China, South Africa (BRICS) Republic Turkey. Design/methodology/approach Given perceived dynamics, current examined BRICS countries Tur...