@article{Herzog2015, author = {Herzog, Bodo}, title = {Applied model for financial bubbles}, journal = {Journal of applied finance \& banking}, volume = {5}, number = {3}, issn = {1792-6580}, url = {http://www.scienpress.com/Upload/JAFB/Vol\%205_3_2.pdf}, institution = {ESB Business School}, pages = {17 -- 26}, year = {2015}, abstract = {This paper develops a linear and tractable model of financial bubbles. I demonstrate the application of the linear model and study the root causes of financial bubbles. Moreover, I derive leading properties of bubbles. This model enables investors and regulators to react to market dynamics in a timely manner. In conclusion, the linear model is helpful for the empirical verification and detection of financial bubbles.}, language = {en} }