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The late 1970s bubble in Dutch collectible postage stamps

Author

Listed:
  • Philip Hans Franses

    (Erasmus School of Economics)

  • Wouter Knecht

    (Erasmus School of Economics)

Abstract

Collectible postage stamp prices in the Netherlands witnessed a bubble in the late 1970s, while prices rapidly floored in the mid-1980s. We analyze 500 individual stamps prices (instead of a single index) to examine whether the bubble could somehow have been predicted and whether there were early warning signals. Also, we study whether the characteristics of these stamps mediated the bubble and the price landing afterward. Scarcity and initial price levels appear to have predictive value in various dimensions. Implications for recognizing bubbles in other asset prices are discussed.

Suggested Citation

  • Philip Hans Franses & Wouter Knecht, 2016. "The late 1970s bubble in Dutch collectible postage stamps," Empirical Economics, Springer, vol. 50(4), pages 1215-1228, June.
    • Handle: RePEc:spr:empeco:v:50:y:2016:i:4:d:10.1007_s00181-015-0974-3
    DOI: 10.1007/s00181-015-0974-3
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    References listed on IDEAS

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    More about this item

    Keywords

    Price bubbles; Philately; Postage stamps; Forecasting; Positive feedback;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • Z11 - Other Special Topics - - Cultural Economics - - - Economics of the Arts and Literature

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