Bubble Period Research Articles

The Influence of the Japanese Real Estate Bubble Economy on the Stability of the Financial System

The financial stability is critical to sustaining economic growth and minimising the financial risks and losses. As a pillar industry of the national economy, the real estate sector has a significant place in economic activities. Japan experienced a real estate boom last century but then witnessed a real estate bubble economy in the 1980s. The bubble economy adversely affected Japanese financial stability and caused a financial crisis in Japan. Based on the literature review method, this paper collects and collates the previous literature on this topic. This essay firstly talked about the formation and burst of Japanese real estate bubble economy and then discussed the impacts of it on the financial stability. Result and conclusion: The study finds that, during the bubble period, the development of the real estate bubble economy adversely affected the financial systematic stability. Excessive credit expansion resulted in a large proportion of nonperforming mortgage loans and restricted the bank liquidity. Rising asset price increased the gap between the market value and fundamental value of the property and the bank witnessed a financial loss. These findings provide references and suggestions for maintaining the stability of financial system when the real estate bubble crisis erupt in the future. This enhances the ability of financial institutions and regulators to deal with financial risks.

The Impact of COVID-19 on Domestic Travel: The Spatial Changes in Taiwan

This paper aims to provide an overview of Taiwanese domestic tourism’s spatial changes during the pandemic era. The research examines five years of domestic tourism flow in Taiwan. Based on the Taiwan Centers for Disease Control’s (CDC) regular reports, we analyzed 744 data categories grouped into eight clusters: international epidemic, major events, border policy, material preparation, community epidemic prevention, relief/compensation policy, inspection/R&D policy, and medical facility control. We defined six pandemic periods based on these factors to analyze the domestic tourism landscape during these eras. A comparative analysis of monthly travel data from local governments and tourism administrations across various periods was conducted. For analysis, we used Tableau, while Corel Draw was applied to map the spatial distribution of domestic travel. By categorizing Taiwan’s geographical areas based on their landscape characteristics and tourism images, we analyzed their domestic tourism performance during this five-year timeframe. The major finding was that domestic tourism significantly benefited from the lockdown situation, generating increased domestic travel and higher industry revenues. The “Bubble period,” when effective local health policies enabled safe travel, was particularly successful. Additionally, the post-COVID period’s domestic travel and revenues surpassed those of the pre-pandemic era.

The legacy of the dot-com bubble: Financial lessons on speculation and fundamentals

The dot-com bubble burst in the early 2000s marked a pivotal moment in financial market history, revealing the dominance of speculative investment behavior over traditional financial fundamentals. This study revisits the dot-com bubble era, focusing on the relationship between key financial metrics (total sales, total assets, net income, total debt, and share price) during a period of intense market speculation. By analyzing these fundamental indicators, the study provides insights that are still relevant modern speculative trends driven by technologies like AI, blockchain, and the metaverse. Examining 30 U.S. companies during the dot-com bubble (1995–2001) and its aftermath (2001–2011) using multiple regression analysis and the Wilcoxon test, we find that total sales, net income, and total debt positively influenced share prices, while total assets had a negative impact. These findings suggest that investor optimism prioritizes growth, profitability, and aggressive financing during speculative periods over traditional indicators like asset size, which are often associated with slower-moving business models. The Wilcoxon test further reveals significant differences in median stock prices between the bubble and post-bubble periods, underscoring the valuation shifts driven by speculative and fundamental factors. By examining historical market behaviors, this study highlights the lasting importance of aligning speculative enthusiasm with financial fundamentals, providing valuable lessons for understanding speculative markets.

Effect of electrical field on pulsation characteristics of laser-induced cavitation bubble

Effect of electrical field on pulsation characteristics of laser-induced cavitation bubble

Near-field underwater explosion and its interaction with a sandwich composite plate

Near-field underwater explosion and its interaction with a sandwich composite plate

Experimental and numerical study on bubble pulsation characteristics of underwater explosions with multiple charges

This study examines the processes of expansion, merging, and collapse of multiple underwater explosion bubbles through experimental and numerical methods. A small-scale underwater explosion experiment was conducted in a water tank. The behaviors of three and four bubbles during expansion, merging, and collapse were captured using high-speed photography, and the effects of the quantity and spacing of the explosive charge on the bubble dynamics were analyzed. The results indicate that the evolution of bubble behavior in multiple charge underwater explosions, including the bubble period and radius, is significantly influenced by the spacing between charges. With a decrease in the ratio of the charge spacing to the bubble radius, the period of the merged bubble increases progressively. Independent small bubbles do not interact when the distance between charges exceeds 1.3 times the bubble radius. Furthermore, when the ratio of the spacing to the initial bubble radius (L/rb) is between 1.0 and 1.3, multiple bubbles merge during the contraction phase. When the spacing is less than the maximum radius of the bubbles, multiple bubbles inevitably merge, with fusion occurring during the expansion phase.

Bitcoin’s bubbly behaviors: does it resemble other financial bubbles of the past?

A number of financial bubbles have occurred throughout history. The objective of this study was to identify the main similarities between Bitcoin price behavior during bubble periods and a number of historical bubbles. Once this had been carried out, we aimed to determine whether the solutions adopted in the past would be effective in the present to reduce investors’ risk in this digital asset. This study brings a new approach, as studies have previously been conducted analyzing the similarity of Bitcoin bubbles to other bubbles individually, but these were not conducted in such a broad manner, addressing different types of bubbles, and over such a broad time period. Starting from a dataset with 9967 records, a combined methodology was used. This consisted of an analysis of the standard deviations, the growth rates of the prices of the assets involved, the percentage increase in asset prices from the origin of the bubble to its peak and its fundamental value, and, finally, the bubble index. Lastly, correlation statistical analysis was performed. The results obtained from the combination of the above methods reveal the existence of certain similarities between the Bitcoin bubbles (2011, 2013, 2017, and 2021) and the tulip bubble (1634–1637) and the Mississippi bubble (1719–1720). We find that the vast majority of the measures taken to avoid past bubbles will not be effective now; this is due to the digital and decentralized nature of Bitcoin. A limitation of the study is the difficulty in making a comparison between bubbles that occurred at different historical points in time. However, the results obtained shed light and provide guidance on the actions to be taken by regulators to ensure the protection of investors in this digital asset.

주택매매시장에서의 거품에 관한 실증연구

This study examines the monthly real house price index movements over the period 1986-2023 using the GSADF method to determine whether bubbles existed in the Korean housing market, where they occurred, when they occurred, and how long they lasted by housing type (total, apartment, detached house, and townhouse). We summarise the main findings from our empirical analysis as follows. First, there were multiple bubbles in housing prices across the nationwide, Seoul, and all provincial metropolitan areas. However, there are many differences in how bubbles occurred across regions and types of housing. Second, the post-bubble period lasted much longer in the detached house market than in the apartment and row house markets. Third, many housing market bubbles occurred during periods of abundant liquidity. Fourth, while most bubbles are positive, appearing during periods of rapid house price appreciation, negative bubbles appeared in some areas (Busan, Gwangju, and Ulsan) during the 1998 Asian financial crisis. Fifth, the detached house markets in Busan and Ulsan are found to be bubbling at the end of the sample (December 2023). These results suggest that the GSADF test can not only detect historical bubble periods, but can also detect bubbles in real time, providing early warning of bubbles.

Does every cloud (bubble) have a silver lining? An investigation of ESG financial markets

Does every cloud (bubble) have a silver lining? An investigation of ESG financial markets

The effect of solid nitrogen on nucleate boiling heat transfer in a slush nitrogen pool

The effect of solid nitrogen on nucleate boiling heat transfer in a slush nitrogen pool

Dynamic relationship between the XRP price and correlation tensor spectra of transaction networks

Dynamic relationship between the XRP price and correlation tensor spectra of transaction networks

Electrolyte design for the manipulation of gas bubble detachment during hydrogen evolution reaction

Electrolyte design for the manipulation of gas bubble detachment during hydrogen evolution reaction

Collapsing behavior of spark-induced cavitation bubble in rigid tube

The phenomenon of cavitation within tubes is a common scenario in the fields of medicine and industry. This paper focuses on the effects of rigid circular tube length, diameter and the distance of bubble - tube port on the behavior of bubble in tube. The low-voltage discharge technique was utilized to induce a cavitation bubble in deionized water. The effects of rigid tube lengths, diameters, and bubble-tube port distances on the morphology of bubbles are observed using high-speed camera. It has been found that as the length of the rigid tube increases, so does the period, and this effect is more pronounced in tubes with smaller diameters. Conversely, the cavitation bubble period decreased and then stabilized as the tube diameter increased, the ratio of tube radius and the bubble radius exceeds 4.8, the period of bubble in tube is similar to that of bubble in free field. Further analysis of the influence of tube characteristics on microjets reveals that a pair of oppositely microjets were formed along the tube axis by the bubble near the midpoint of the tube axis. Moreover, when the non-dimensional tube length η<3.5, the increase tube diameter results in a decrease microjet velocity. It has also been observed that as the bubble gradually approaches the interior of the tube, the velocity of microjets directed inward decreases. Additionally, the smaller the diameter of the tube, the greater the bubble-tube port distance required for the microjets to reach the same level of velocity as bubble near the center of the tube axis. These findings hold theoretical implications for improvement of targeted drug delivery efficiency in medicine and enhance the operational efficiency of inertial micropumps in industries.

Who has mastered exchange rate ups and downs: China or the United States?

Who has mastered exchange rate ups and downs: China or the United States?

Clustering, coalescing and bursting processes in surface bubbles of surfactant water flows

Breaking waves aerate seawater surfaces and form whitecaps in the open ocean. The aerated surface area, or whitecap coverage, has been used to macroscopically parametrize air–sea momentum and gas exchange. However, the microscopic mechanisms of the generation, evolution and attenuation of surface bubbles in whitecaps remain poorly understood. In this study, we examined the size distributions and size-dependent lifetimes of surface bubbles generated by water sheet entry and air injection on a porous plate during the clustering, coalescing and bursting processes, depending on surfactant concentrations and bubble mobility. Mechanisms of coalescence through film thinning of adjacent bubble walls owing to the inter-bubble attraction and Marangoni forces experimentally described the surfactant-dependent bubble growth, finally achieving bubble bursting, which were statistically characterized in a population balance analysis. Lagrangian bubble lifetimes were described by the Weibull distribution, providing that surfactant in seawater extended the probabilistic survival periods of surface bubbles two times longer than those of clean bubbles.

Heterogeneity in household consumption behavior: The role of inequality and financial instability

We analyze, using the micro data of the Household Financial Survey (HFS) of the Bank of Spain, the consumption consequences of the household balance sheets and debt accumulation during the real estate bubble of 2002–2005, the Great Recession (2008–2011) and the subsequent economic recovery phase (2014–2017). Using quantile regression models, we find heterogeneity in household consumption behavior with respect to income and net worth levels, and in response to changes in household net worth in the last two periods. During the considered real estate bubble period, this heterogeneity in behavior is diminished, and only occurs in relation to the level of net wealth, in line with Hyman Minsky’s Paradox of Tranquility. These findings favor the post-Keynesian theory on consumption. The greater inequality leads to a higher propensity of certain households to consume in response to changes in housing and financial net worth. This is compatible with the relative income hypothesis extended in expenditure cascades models. Otherwise, households will be willing to take on more risk during economic boom periods associated with a real estate bubble, which translates into debt-financed consumption that virtually makes such heterogeneity practically disappear.

Dynamic behaviors of RC caisson subjected to underwater explosions

Dynamic behaviors of RC caisson subjected to underwater explosions

Experimental study on the dynamics of a spark bubble near the top of a cylinder and associated annular secondary cavitation bubbles

This paper presents an experimental study focused on the annular secondary cavitation caused by the interaction between a high-voltage spark bubble and a cylinder. A 2000 V high-voltage underwater electric discharge was used to create the bubble, which reached a maximum diameter of approximately 31 mm. High-speed photography was employed to capture the behavior of the spark bubble and the induced secondary cavitation bubbles. The formation and evolution of the annular secondary cavitation bubbles near the cylinder's edge were captured and analyzed. The study classified the morphology of the annular secondary cavitation bubbles into three different types based on various bubble distances and cylinder diameters. Notably, unique bubble morphologies, such as the terraced bubble shape, were identified, resulting from the coupling between the spark bubble, the annular secondary cavitation bubble, and the cylinder. The interaction between the annular secondary cavitation bubble and the spark bubble, including coalescence, and the resulting effects on bubble shape and period were investigated. The changes of secondary cavitation bubbles are compared when the cylinder has different chamfer angles. Moreover, the study examined the dynamic characteristics of the bubbles, including their shape evolution, jetting behavior, period length, and pressure pulses upon collapse, at various distances from the top-surface of cylinders with different diameters. The experiment also introduced flow visualization with dye into spark bubble experiments for the first time to trace the vortex around the annular secondary bubble. Additionally, the transparency of bubbles in the images was improved through multi-source lighting techniques.

Risk characteristics and connectedness in cryptocurrency markets: New evidence from a non-linear framework

Risk characteristics and connectedness in cryptocurrency markets: New evidence from a non-linear framework

Scaling law of deep-sea trinitrotoluene (TNT) explosion

Understanding the dynamic characteristics of deep-sea explosions is essential to improve the survivability and combat capability of deep-sea equipment. In this paper, by considering the practical underwater conditions, we investigated the mechanical effects of the deep-sea 1-kg-trinitrotoluene (TNT) explosion with charge depths ranging from 1 to 10 km through numerical simulation and dimensional analysis. The shock wave overpressure, the positive overpressure pulse, the bubble pulse, and the energy distribution for various depth explosions were analyzed systematically. The simulation results showed that the charge depth was negligible for the peak overpressure of the shock wave. However, the positive overpressure pulse, the shock wave energy, the maximum bubble radius, the bubble energy, and the bubble period decrease significantly with increasing the charge depth. Then, the dimensional analysis for deep-sea TNT explosion was performed to reveal the key dimensionless parameters, from which the scaling laws of the shock wave overpressure and the overpressure pulse were obtained. By fitting the simulation results, the dimensionless equations were proposed, providing an effective method for predicting the peak overpressure and the positive overpressure pulse of shock wave for underwater TNT explosion over a wide range of water depths.