Proceedings of the 4th International Conference on Economic Management and Big Data Applications, ICEMBDA 2023, October 27–29, 2023, Tianjin, China

Research Article

Asset Bubbles and Financial Crises: An Analysis Based on the Three-Stage Theory

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  • @INPROCEEDINGS{10.4108/eai.27-10-2023.2341965,
        author={Yimin  Zhou and Zijin  Wang},
        title={Asset Bubbles and Financial Crises: An Analysis Based on the Three-Stage Theory},
        proceedings={Proceedings of the 4th International Conference on Economic Management and Big Data Applications, ICEMBDA 2023, October 27--29, 2023, Tianjin, China},
        publisher={EAI},
        proceedings_a={ICEMBDA},
        year={2024},
        month={1},
        keywords={asset bubbles financial leverage expect group behavior},
        doi={10.4108/eai.27-10-2023.2341965}
    }
    
  • Yimin Zhou
    Zijin Wang
    Year: 2024
    Asset Bubbles and Financial Crises: An Analysis Based on the Three-Stage Theory
    ICEMBDA
    EAI
    DOI: 10.4108/eai.27-10-2023.2341965
Yimin Zhou1,*, Zijin Wang2
  • 1: Southwestern University of Finance and Economics
  • 2: Wuhan University of Technology
*Contact email: 42054056@smail.swufe.edu.cn

Abstract

This paper primarily examines the three stages of bubbles—seeding, development, and culmination—emphasizing the role of expectations, changes in economic behavior, financial leverage, vicious cycles, upward trends, and herd behavior. The research provides essential insights for making informed policy decisions and timing interven-tions during asset bubble phases, contributing to mitigating the impact of bubble bursts.