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Riding the South Sea Bubble

Peter Temin, Hans-Joachim Voth

American Economic Review 94(5), pp. 1654-1668 (2004)

Published version Data

Abstract

This paper presents a case study of a well-informed investor in the South Sea bubble. We argue that Hoare's Bank knew that a bubble was in progress and nonetheless invested in the stock: it was profitable to "ride the bubble."

Keywords
South Sea Bubble, asset bubbles, rational investors, financial history, limits to arbitrage
DOI
10.1257/0002828043052268
Canonical
https://www.jvoth.com/papers/riding-the-south-sea-bubble.html

Peter Temin, Hans-Joachim Voth (2004). “Riding the South Sea Bubble.” American Economic Review.