Speculative Prices and Popular Models

Bibliographic Data

ID4028892
AuthorsRobert J Shiller (0009-0006-2316-6486, Stanley B. Resor Professor of Economics, Cowles Foundation, Yale University, New Haven, Connecticut., corresponding author)
Year1990
Volume4
Issue2
Pages55-65
Publication date1990-05-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueThe Journal of Economic Perspectives (JOURNAL)
Journal identifiersISSN: 0895-3309 • E-ISSN: 1944-7965
PublisherAmerican Economic Association (PUBLISHER • US)
DOI10.1257/jep.4.2.55
OpenAlexW2001914996
LanguageEN
Citations received14
References cited3

The key idea of rational expectations models is to assume that people know (or behave as if they know) the true model that describes the economy. However, popular economic models (the models that are used by the broad masses of economic actors to form their expectations) are obviously not the same as those held by economists. This paper reports on data collection effort on popular models, using questionnaire survey methods, with the purpose of understanding speculative markets. I will report here on my research to understand the U.S. stock market crash of October 1987; research Fumiko Konya, Yoshiro Tsutsui, and I undertook to understand the Japanese stock market crash of October 1987; research Karl Case and I undertook to understand recent real estate booms; and research John Pound and I undertook to understand the periodic "hot" markets for initial public offerings (IPO's) of common stock

Boom · Crash · Economic model · Economics · Financial economics · Initial public offering · Macroeconomics · Rational expectations · Real estate · Stock market · Stock market crash · Computer Science · Engineering · Fiscal Policies and Political Economy · History · Housing Market and Economics · Finance

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