Great Crash of 1929 - A Reconciliation of Theory and Evidence

Understanding the American stock market boom and bust of the 1920s is vital for formulating policies to combat the potentially deleterious effects of busts on the economy. Using new data, Kabiri explains what led to the 1920s stock market boom and 1929 crash and looks at whether 1929 was a bubble or not and whether it could have been anticipated.

List of contents

1. Introduction 2. Literature Review and Methodology 3. The US Economy and the Financial System 4. The Returns to US Common Stocks from 1871 - 2010 5. The October Crash of 1929 and the NYSE Credit System 6. The Great Contraction 1929 - 1933 and the Value of Stocks 7. Conclusions

About the author

Ali Kabiri is a research associate at the Financial Markets Group at the LSE and a Lecturer in Economics at the University of Buckingham, UK. He has been a visiting research scholar at Columbia Business School and Yale University in the USA.

Summary

Understanding the American stock market boom and bust of the 1920s is vital for formulating policies to combat the potentially deleterious effects of busts on the economy. Using new data, Kabiri explains what led to the 1920s stock market boom and 1929 crash and looks at whether 1929 was a bubble or not and whether it could have been anticipated.

Additional text

“Kabiri’s book provides a synthesis of the
debates on the 1929 crash but also a new set of tests built on both existing
and newly collected data to understand which forces drove the stock market to
levels reached in the 1920s … . book contributes to behavioral economics,
estimating the rationality of the rise and fall in stock prices during the boom
and bust as well as to history of economic thought, detailing financial
theories and methods of the 1920s.” (Raphaël Hekimian, EH Net, eh.net, August,
2015)

Report

"Kabiri's book provides a synthesis of the debates on the 1929 crash but also a new set of tests built on both existing and newly collected data to understand which forces drove the stock market to levels reached in the 1920s ... . book contributes to behavioral economics, estimating the rationality of the rise and fall in stock prices during the boom and bust as well as to history of economic thought, detailing financial theories and methods of the 1920s." (Raphaël Hekimian, EH Net, eh.net, August, 2015)

Product details

• Authors: A Kabiri, A. Kabiri, Ali Kabiri
• Publisher: Palgrave UK
• Languages: English
• Product format: Paperback / Softback
• Released: 14.01.2014
• EAN: 9781349476374
• ISBN: 978-1-349-47637-4
• No. of pages: 251
• Series: Palgrave Studies in the History of Finance; Palgrave Studies in the Histor; Palgrave Studies in the History of Finance
• Subjects: Social sciences, law, business > Business > Economics; Makroökonomie, Wirtschaftsgeschichte, B, Wirtschaftspolitik, politische Ökonomie, Economic Policy, Finance, Investment Banking, macroeconomics, Economic history, Financial Services, Securities, Political Economy, Macroeconomics and Monetary Economics, Macroeconomics/Monetary Economics//Financial Economics, Monetary Economics, Management science, Investments and Securities, History of Economic Thought and Methodology, History of Economic Thought/Methodology, Investment & securities, Finance—History, Financial History, Palgrave Economics & Finance Collection, Finanzenwesen und Finanzindustrie