Econometric Models for Detecting Asset Boom and Bust Cycles

Summary

The document asks whether asset price boom, bust, and recovery cycles can be detected systematically. A response points to a study using an econometric model to predict bubbles and crises, suggesting that its framework may address boom and bust phases.

The source provides only a reference and a brief description: it does not explain the model, report findings, or discuss recovery-cycle detection. Readers would need to consult the cited study to assess its methods, evidence, and limitations; the exchange itself offers no validation or practical guidance.

Key ideas

• An econometric model for bubble and crisis prediction may help study asset price booms and busts.
• The response does not establish a method for identifying recovery cycles.
• The discussion provides a reference but no details on model design or empirical evidence.

Tags

# Asset prices Boom,Bust and Recovery cycles


# Asset prices Boom,Bust and Recovery cycles












Is there any systematic way to detect the Boom, bust and Recovery cycles in Asset Prices ? Are there any good references about the Topic ?

Thanks in advance.

## Answer by KaiSqDist (score 1)

https://quant.stackexchange.com/a/76862

Hi there and welcome to the forum. I can't say for recovery cycles, but I used this paper (https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3299498) on a project for a master's course. It is mostly about bubble and crisis prediction with an econometric model, I guess that corresponds to your boom and busts.

Hopefully this helps!

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