How to Cite
Fernández Mejía, J., & Uribe, J. M. (2016). Analysis of financial asset price explosions : evidence from around the world. Revista Finanzas Y Política Económica, 8(1), 83–103. https://doi.org/10.14718/revfinanzpolitecon.2016.8.1.5
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Abstract

This article analyzes different international share price indices for the period 1995-2013, in order to test for the existence and date of appearance of asset price explosions in the world's stock markets. A sign test is employed to construct different indices of bubbles in representative financial markets for each region, using dynamic factor models. These indices permit a characterization to be made of each region in terms of risk and, also, of the occurrence of financial bubbles. Evidence is found that indicates a certain degree of synchronization between episodes of financial bubbles in the markets analyzed and, generally, at international level.

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