Bubbles and behavioral finance

Abstract

This book has complied with two Journal papers and three working papers. We do not have any copyright issue in our book. This book includes Chapter 1 revisits the housing bubble by using right tailed ADF test and provides useful policy recommendations at the end. Chapter 2 reviews bubbles solutions to the Cagan hyperinflation models under rational expectations. Chapter 3 undertakes Marko-switching cointegration test of price and exchange rate bubbles. Chapter 4 attempts to identify and analyse the key factors that capture small investors’ behaviour in the Hong Kong stock market. Chapter 5 investigates the macroeconomic fundamentals in the Hong Kong stock market. The authors are eager to get this book published and intend to maintain strong friendships. We are closely cooperating with each other and are more united than ever.