IDEAS home Printed from https://ideas.repec.org/a/rej/journl/v22y2020i76p24-37.html

Artificial Intelligence Sector: The Next Technology Bubble? A Comparative Analysis with Dotcom Based on Stock Market Data

Author

Listed:
  • Robert Dobre
  • Daniel Bulin
  • Maria-Cristina Iorgulescu
  • Iulia Monica Oehler-Sincai
  • Olimpia State

Abstract

The main purpose of this research is to present a detailed comparison between the 1996-2001 Dotcom and 2014-2018 AI landscapes, by comparing the evolution of Dotcom and AI through a regression model aimed at testing the relationship between these two phenomena, which have similar characteristics, but also distinct features. In a period when the academic and the business environment discourse is focused on the potential effects of diminishing funding and interest in AI and even a bubble burst, our investigation demonstrates the contrary. Having in mind the strengths of the AI market and its interrelations with significant sectors of the world economy, our paper denies the hypothesis of a potential AI crisis, in spite of some hints that AI companies are in the early stages of high risk. Our paper brings also another novelty element related to a different type of Schumpeterian creative destruction identified in the case of AI. The big players present on the market are able to purchase the firms that Schumpeter suggested would replace the existing firms, therefore the creative destruction occurs in the case of start-ups, which are undertaken by stronger companies present on the market, even survivors of the Dotcom crisis, not vice versa.

Suggested Citation

  • Robert Dobre & Daniel Bulin & Maria-Cristina Iorgulescu & Iulia Monica Oehler-Sincai & Olimpia State, 2020. "Artificial Intelligence Sector: The Next Technology Bubble? A Comparative Analysis with Dotcom Based on Stock Market Data," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 22(76), pages 24-37, June.
    • Handle: RePEc:rej:journl:v:22:y:2020:i:76:p:24-37
    as

    Download full text from publisher

    File URL: http://www.rejournal.eu/sites/rejournal.versatech.ro/files/articole/2020-07-10/3601/2dobreetal.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Leone, Vitor & de Medeiros, Otavio Ribeiro, 2015. "Signalling the Dotcom bubble: A multiple changes in persistence approach," The Quarterly Review of Economics and Finance, Elsevier, vol. 55(C), pages 77-86.
    2. Jaume Ventura, 2002. "Bubbles and capital flows," Economics Working Papers 846, Department of Economics and Business, Universitat Pompeu Fabra, revised Mar 2010.
    3. Martin Kenney & John Zysman, 2019. "Unicorns, Cheshire cats, and the new dilemmas of entrepreneurial finance," Venture Capital, Taylor & Francis Journals, vol. 21(1), pages 35-50, January.
    4. Alberto Martin & Jaume Ventura, 2012. "Economic Growth with Bubbles," American Economic Review, American Economic Association, vol. 102(6), pages 3033-3058, October.
    5. Vasile Gherheș & Ciprian Obrad, 2018. "Technical and Humanities Students’ Perspectives on the Development and Sustainability of Artificial Intelligence (AI)," Sustainability, MDPI, vol. 10(9), pages 1-16, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:bjc:journl:v:10:y:2024:i:12:p:423-444 is not listed on IDEAS
    2. Darko B. Vuković & Senanu Dekpo-Adza & Stefana Matović, 2025. "AI integration in financial services: a systematic review of trends and regulatory challenges," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-29, December.
    3. Demmler, Michael & Fernández, Amilcar Orlian, 2024. "Explosive behavior in historic NASDAQ market prices," The North American Journal of Economics and Finance, Elsevier, vol. 71(C).
    4. Akhilesh Chandra & Charles F. Malone, 2024. "State of The Dotcom-Era Accounting Information Systems (AIS) Faculty and Implications for The Artificial Intelligence (AI)-Era," Accounting and Management Information Systems, Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, vol. 23(4), pages 740-792, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stefano Bosi & Cuong Le Van & Ngoc-Sang Pham, 2014. "Intertemporal equilibrium with production: bubbles and efficiency," Post-Print halshs-01020888, HAL.
    2. Alberto Martin & Jaume Ventura, 2011. "Theoretical Notes on Bubbles and the Current Crisis," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 59(1), pages 6-40, April.
    3. Aart Kraay & Jaume Ventura, 2007. "The Dot-Com Bubble, the Bush Deficits, and the US Current Account," NBER Chapters, in: G7 Current Account Imbalances: Sustainability and Adjustment, pages 457-496, National Bureau of Economic Research, Inc.
    4. Bo Zhao, 2015. "Rational housing bubble," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 60(1), pages 141-201, September.
    5. Óscar Arce & David López-Salido, 2011. "Housing Bubbles," American Economic Journal: Macroeconomics, American Economic Association, vol. 3(1), pages 212-241, January.
    6. Ken‐ichi Hashimoto & Ryonghun Im & Takuma Kunieda & Akihisa Shibata, 2022. "Asset bubbles, unemployment, and financial market frictions," Economic Inquiry, Western Economic Association International, vol. 60(4), pages 1806-1832, October.
    7. Hirano, Tomohiro & Inaba, Masaru & Yanagawa, Noriyuki, 2015. "Asset bubbles and bailouts," Journal of Monetary Economics, Elsevier, vol. 76(S), pages 71-89.
    8. Raurich, Xavier & Seegmuller, Thomas, 2019. "On the interplay between speculative bubbles and productive investment," European Economic Review, Elsevier, vol. 111(C), pages 400-420.
    9. Francesco Furlanetto & Francesco Ravazzolo & Samad Sarferaz, 2019. "Identification of Financial Factors in Economic Fluctuations," The Economic Journal, Royal Economic Society, vol. 129(617), pages 311-337.
    10. Araujo, Luis & Guimaraes, Bernardo, 2015. "Intertemporal coordination with delay options," Journal of Economic Theory, Elsevier, vol. 157(C), pages 793-810.
    11. Enders, Zeno & Hakenes, Hendrik Hakenes, 2014. "On the Existence and Prevention of Speculative Bubbles," Working Papers 0567, University of Heidelberg, Department of Economics.
    12. Alberto Martín & Enrique Moral-Benito & Tom Schmitz, 2018. "The Financial Transmission of Housing Bubbles: Evidence from Spain," Working Papers 625, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    13. Tan Yigitcanlar & Kevin C. Desouza & Luke Butler & Farnoosh Roozkhosh, 2020. "Contributions and Risks of Artificial Intelligence (AI) in Building Smarter Cities: Insights from a Systematic Review of the Literature," Energies, MDPI, vol. 13(6), pages 1-38, March.
    14. S Coleman & K Sirichand, 2015. "Investigating Multiple Changes in Persistence in International Yields," Economic Issues Journal Articles, Economic Issues, vol. 20(1), pages 65-90, March.
    15. Kizuku Takao, 2014. "Growth effect of bubbles in a non-scale endogenous growth model with in-house R&D," Discussion Papers in Economics and Business 14-11, Osaka University, Graduate School of Economics.
    16. Larin, Benjamin, 2016. "Bubble-driven business cycles," Working Papers 143, University of Leipzig, Faculty of Economics and Management Science.
    17. Liu, Xuewen & Wang, Pengfei & Yang, Zhongchao, 2024. "Delayed crises and slow recoveries," Journal of Financial Economics, Elsevier, vol. 152(C).
    18. Clain-Chamosset-Yvrard Lise & Seegmuller Thomas, 2019. "Bubble on real estate: the role of altruism and fiscal policy," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 23(4), pages 1-18, September.
    19. Robert Becker & Stefano Bosi & Cuong Van & Thomas Seegmuller, 2015. "On existence and bubbles of Ramsey equilibrium with borrowing constraints," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 58(2), pages 329-353, February.
    20. Oberholzer, Basil, 2023. "Post-growth transition, working time reduction, and the question of profits," Ecological Economics, Elsevier, vol. 206(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation: Models and Applications
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rej:journl:v:22:y:2020:i:76:p:24-37. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Radu Lupu (email available below). General contact details of provider: https://edirc.repec.org/data/frasero.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.