We present a dynamic theory of prices and volume in asset bubbles. In our framework, predictable price increases … volume and prices, which we confirm in the 2000-2011 US housing bubble. Using data on 50 million home sales from this episode …

of perverse incentives and moral hazard that often gives rise to yet another round of bubbles. The US central bank …'s current premise is that policymakers cannot and should not target asset bubbles. However, the housing story has rendered … untenable the prevailing belief that bubbles are impossible to spot ahead of time. The warning signals were ubiquitous - for …

, we ask the following question: As to what extent are speculative bubbles predictable during a financial crisis? Knowledge … bubbles during the 2008–2009 US subprime crisis. The data used in the study are daily SENSEX values (i.e., combination of …