Dissecting the dot-com bubble in the 1990s NASDAQ

Authors: Yuchao Fan

License: CC BY 4.0

Abstract: In this paper, I revisit Phillips, Wu and Yu's seminal 2011 paper on testing for the dot-com bubble. I apply recent advancements of their methods to individual Nasdaq stocks and use a novel specification for fundamentals. To address a divide in the literature, I generate a detailed sectoral breakdown of the dot-com bubble. I find that it comprised multiple overlapping episodes of exuberance and that there were indeed two starting dates for internet exuberance.

Submitted to arXiv on 28 Jun. 2022

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