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Speculative Fever: Investor Contagion in the Housing Bubble

Publication ,  Other
Bayer, P; Mangum, K; Roberts, JW
Published in: Economic Research Initiatives at Duke (ERID)
February 1, 2016

Historical anecdotes of new investors being drawn into a booming asset market, only to suffer when the market turns, abound. While the role of investor contagion in asset bubbles has been explored extensively in the theoretical literature, causal empirical evidence on the topic is virtually non-existent. This paper studies the recent boom and bust in the U.S. housing market, and establishes that many novice investors entered the market as a direct result of observing investing activity of multiple forms in their own neighborhoods, and that “infected” investors performed poorly relative to other investors along several dimensions.

Duke Scholars

Published In

Economic Research Initiatives at Duke (ERID)

Publication Date

February 1, 2016

Issue

211

Related Subject Headings

  • Economics
  • 38 Economics
  • 35 Commerce, management, tourism and services
  • 15 Commerce, Management, Tourism and Services
  • 14 Economics
 

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Bayer, P., Mangum, K., & Roberts, J. W. (2016). Speculative Fever: Investor Contagion in the Housing Bubble. Economic Research Initiatives at Duke (ERID).
Bayer, P., K. Mangum, and J. W. Roberts. “Speculative Fever: Investor Contagion in the Housing Bubble.” Economic Research Initiatives at Duke (ERID), February 1, 2016.
Bayer P, Mangum K, Roberts JW. Speculative Fever: Investor Contagion in the Housing Bubble. Economic Research Initiatives at Duke (ERID). 2016.
Bayer, P., et al. “Speculative Fever: Investor Contagion in the Housing Bubble.” Economic Research Initiatives at Duke (ERID), no. 211, 1 Feb. 2016.
Bayer P, Mangum K, Roberts JW. Speculative Fever: Investor Contagion in the Housing Bubble. Economic Research Initiatives at Duke (ERID). 2016.

Published In

Economic Research Initiatives at Duke (ERID)

Publication Date

February 1, 2016

Issue

211

Related Subject Headings

  • Economics
  • 38 Economics
  • 35 Commerce, management, tourism and services
  • 15 Commerce, Management, Tourism and Services
  • 14 Economics