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Role of Diversification Risk in Financial Bubbles     Financial  Swiss Finance Institute       font style='font-size:12px;'> 2011/7/19
We present an extension of the Johansen-Ledoit-Sornette (JLS) model to include an additional pricing factor called the “Zipf factor”, which describes the diversification risk of the stock market por...
Computational LPPL Fit to Financial Bubbles     Computational LPPL Fit  Financial Bubbles       font style='font-size:12px;'> 2010/10/19
The log-periodic power law (LPPL) is a model of asset prices during endogenous bubbles. If the on-going development of a bubble is suspected, asset prices can be fit numerically to the LPPL law. The b...
We highlight a very simple statistical tool for the analysis of financial bubbles, which has already been studied in [1]. We provide extensive empirical tests of this statistical tool and investigate ...
We present a self-consistent model for explosive financial bubbles, which combines a mean-reverting volatility process and a stochastic conditional return which reflects nonlinear positive feedbacks...
We propose two rational expectation models of transient financial bubbles with heterogeneous arbitrageurs and positive feedbacks leading to self-reinforcing transient stochastic faster-than-exponent...
The financial crisis of 2008, which started with an initially well-defined epicenter focused on mortgage backed securities (MBS), has been cascading into a global economic recession, whose increasing ...

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