Evidence, Determinants, And Consequences Of Asset Price Bubbles: The Case Of Malaysia And Singapore

Asset price bubbles have been a phenomenon that has occurred for centuries. This phenomenon can result in a negative impact on a country’s economy during the build-up and collapse phase. The issue with a bubble build-up is the misallocation of scarce economic resources in speculative activities whic...

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Main Author:	Gary , John Rangel
Format:	Thesis
Language:	English
Published:	2010
Subjects:	HD28-70 Management Industrial Management
Online Access:	http://eprints.usm.my/42930/1/Gary_John_Rangel24.pdf
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spelling	my-usm-ep.429302019-04-12T05:26:51Z Evidence, Determinants, And Consequences Of Asset Price Bubbles: The Case Of Malaysia And Singapore 2010-06 Gary , John Rangel HD28-70 Management. Industrial Management Asset price bubbles have been a phenomenon that has occurred for centuries. This phenomenon can result in a negative impact on a country’s economy during the build-up and collapse phase. The issue with a bubble build-up is the misallocation of scarce economic resources in speculative activities which crowd out investment in productive activities. When the bubble collapses, its effect is even greater on society as a whole. Researchers nevertheless are still debating its existence even historically, what its causes are, and whether it will has any consequential effects on countries generally and society at large. This study seeks to provide further insight on these three questions. A multi-test approach was employed to determine the existence of bubbles. Using the financial instability hypothesis proposed by Hyman Minsky and a polynomial distributed lag approach; several salient variables were identified to have explanatory properties on the propagation of asset price bubbles in Malaysia and Singapore. In the case of stock price bubbles propagation, both real GDP growth and capital flows are consistently significant explanatory variables. As for real estate bubbles, real interest rates, real GDP growth, and the stock market bubble proxy are leading indicators. With these leading indicators in hand, both investors and government authorities can implement appropriate monitoring measures on these salient variables to ameliorate the effects of bubble build-up and its collapse. 2010-06 Thesis http://eprints.usm.my/42930/ http://eprints.usm.my/42930/1/Gary_John_Rangel24.pdf application/pdf en public phd doctoral Universiti Sains Malaysia Pusat Pengajian Pengurusan
institution	Universiti Sains Malaysia
collection	USM Institutional Repository
language	English
topic	HD28-70 Management Industrial Management
spellingShingle	HD28-70 Management Industrial Management Gary , John Rangel Evidence, Determinants, And Consequences Of Asset Price Bubbles: The Case Of Malaysia And Singapore
description	Asset price bubbles have been a phenomenon that has occurred for centuries. This phenomenon can result in a negative impact on a country’s economy during the build-up and collapse phase. The issue with a bubble build-up is the misallocation of scarce economic resources in speculative activities which crowd out investment in productive activities. When the bubble collapses, its effect is even greater on society as a whole. Researchers nevertheless are still debating its existence even historically, what its causes are, and whether it will has any consequential effects on countries generally and society at large. This study seeks to provide further insight on these three questions. A multi-test approach was employed to determine the existence of bubbles. Using the financial instability hypothesis proposed by Hyman Minsky and a polynomial distributed lag approach; several salient variables were identified to have explanatory properties on the propagation of asset price bubbles in Malaysia and Singapore. In the case of stock price bubbles propagation, both real GDP growth and capital flows are consistently significant explanatory variables. As for real estate bubbles, real interest rates, real GDP growth, and the stock market bubble proxy are leading indicators. With these leading indicators in hand, both investors and government authorities can implement appropriate monitoring measures on these salient variables to ameliorate the effects of bubble build-up and its collapse.
format	Thesis
qualification_name	Doctor of Philosophy (PhD.)
qualification_level	Doctorate
author	Gary , John Rangel
author_facet	Gary , John Rangel
author_sort	Gary , John Rangel
title	Evidence, Determinants, And Consequences Of Asset Price Bubbles: The Case Of Malaysia And Singapore
title_short	Evidence, Determinants, And Consequences Of Asset Price Bubbles: The Case Of Malaysia And Singapore
title_full	Evidence, Determinants, And Consequences Of Asset Price Bubbles: The Case Of Malaysia And Singapore
title_fullStr	Evidence, Determinants, And Consequences Of Asset Price Bubbles: The Case Of Malaysia And Singapore
title_full_unstemmed	Evidence, Determinants, And Consequences Of Asset Price Bubbles: The Case Of Malaysia And Singapore
title_sort	evidence, determinants, and consequences of asset price bubbles: the case of malaysia and singapore
granting_institution	Universiti Sains Malaysia
granting_department	Pusat Pengajian Pengurusan
publishDate	2010
url	http://eprints.usm.my/42930/1/Gary_John_Rangel24.pdf
_version_	1747821130098409472

Evidence, Determinants, And Consequences Of Asset Price Bubbles: The Case Of Malaysia And Singapore

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