A Deterministic Description of Irrational and Semi-Rational Bubbles in Asset Markets

This present work provides a deterministic description irrational and semi-rational bubbles based on the stylised description forwarded by Hyman Minsky (1972), Day and Huang (1990) respectively. The paper emphasises on two areas: First, it proposes a mathematical representation of an irrational bubble using piece-wise linear maps in a discrete time frame. Second, it studies the chaotic signals generated by them to explain the instability in asset price bubbles and explains the factors which impact their longevity.