The Resource Recreating the South Sea Bubble : lessons from an experiment in financial history, Giovanni Giusti, Charles Noussair and Hans-Joachim Voth, (electronic resource)

Recreating the South Sea Bubble : lessons from an experiment in financial history, Giovanni Giusti, Charles Noussair and Hans-Joachim Voth, (electronic resource)

Label
Recreating the South Sea Bubble : lessons from an experiment in financial history
Title
Recreating the South Sea Bubble
Title remainder
lessons from an experiment in financial history
Statement of responsibility
Giovanni Giusti, Charles Noussair and Hans-Joachim Voth
Creator
Contributor
Author
Subject
Language
eng
Summary
Major bubble episodes are rare events. In this paper, we examine what factors might cause some asset price bubbles to become very large. We recreate, in a laboratory setting, some of the specific institutional features investors in the South Sea Company faced in 1720. Several factors have been proposed as potentially contributing to one of the greatest periods of asset overvaluation in history: an intricate debt-for-equity swap, deferred payment for these shares, and the possibility of default on the deferred payments. We consider which aspect might have had the most impact in creating the South Sea bubble. The results of the experiment suggest that the company's attempt to exchange its shares for government debt was the single biggest contributor to the stock price explosion, because of the manner in which the swap affected fundamental value. Issuing new shares with only partial payments required, in conjunction with the debt-equity swap, also had a significant effect on the size of the bubble. Limited contract enforcement, on the other hand, does not appear to have contributed significantly
Member of
Cataloging source
GZM
http://library.link/vocab/creatorName
Giusti, Giovanni
Illustrations
illustrations
Index
no index present
Literary form
non fiction
Nature of contents
  • dictionaries
  • bibliography
http://library.link/vocab/relatedWorkOrContributorName
  • Noussair, Charles
  • Voth, Hans-Joachim
  • Centre for Economic Policy Research (Great Britain)
Series statement
  • Discussion paper series,
  • Economic history
  • Financial economics
  • International macroeconomics
Series volume
no. 9652
http://library.link/vocab/subjectName
  • South Sea Company
  • South Sea Bubble, Great Britain, 1720
  • Financial crises
Label
Recreating the South Sea Bubble : lessons from an experiment in financial history, Giovanni Giusti, Charles Noussair and Hans-Joachim Voth, (electronic resource)
Link
http://www.cepr.org.ezproxy.eui.eu/content/discussion-papers
Instantiates
Publication
Note
  • "September 2013."
  • "Submitted 28 August 2013."
Bibliography note
Includes bibliographical references (pages 33-35)
Carrier category
online resource
Carrier category code
  • cr
Carrier MARC source
rdacarrier.
Content category
text
Content type code
  • txt
Content type MARC source
rdacontent.
Control code
FIEb17471138
Extent
1 online resource (49 pages)
Form of item
online
Media category
computer
Media MARC source
rdamedia.
Media type code
  • c
Other physical details
illustrations.
Specific material designation
remote
System control number
(OCoLC)858460984
Label
Recreating the South Sea Bubble : lessons from an experiment in financial history, Giovanni Giusti, Charles Noussair and Hans-Joachim Voth, (electronic resource)
Link
http://www.cepr.org.ezproxy.eui.eu/content/discussion-papers
Publication
Note
  • "September 2013."
  • "Submitted 28 August 2013."
Bibliography note
Includes bibliographical references (pages 33-35)
Carrier category
online resource
Carrier category code
  • cr
Carrier MARC source
rdacarrier.
Content category
text
Content type code
  • txt
Content type MARC source
rdacontent.
Control code
FIEb17471138
Extent
1 online resource (49 pages)
Form of item
online
Media category
computer
Media MARC source
rdamedia.
Media type code
  • c
Other physical details
illustrations.
Specific material designation
remote
System control number
(OCoLC)858460984

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