Using the Markov regime switching unit root testing procedure developed by Hall, Psaradakis, and Sola (1999), we test the presence of periodically collapsing bubbles as postulated by Minsky (1975), in the time series of industry indices. Results indicate that although the industry index series...

As asset pricing, especially in emerging markets has been of continued interest in finance, this paper contributes by investigating the presence of periodically collapsing bubbles in seven Asian and seven Latin American emerging markets. Although a number of studies, using different approaches...