Was there a NASDAQ bubble in the late 1990s?
By: Lubos Pastor, Pietro Veronesi.
Contributors: Veronesi, Pietro.; National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 10581; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 10581.
Publisher: National Bureau of Economic Research
Published: 2004
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: Stocks -- Prices -- United States -- History -- 20th century.; Uncertainty.; NASDAQ (Computer network); United States -- Economic conditions -- 1981-2001.
Description: "Not necessarily.  The fundamental value of a firm increases with uncertainty about average future profitability, and this uncertainty was unusually high in the late 1990s.  We calibrate a stock valuation model that includes this uncertainty, and show that the uncertainty needed to match the observed Nasdaq valuations at their peak is high but plausible.  The high uncertainty might also explain the unusually high return volatility of Nasdaq stocks in the late 1990s.  Uncertainty has the biggest effect on stock prices when the equity premium is low"--National Bureau of Economic Research web site.
Notes: Includes bibliographical references.
Title from PDF file as viewed on 1/27/2005.
Also available in print.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.