VoxEU Video
Innovation waves and investor sentiment
Are booms and busts in the technology sector irrational bubbles? In this Vox Views video, Paolo Fulghieri argues that this pattern is the outcome of rational investors who are uncertainty-averse about future innovation waves. Investors tend to value innovation more when it comes in clubs, whereas when innovation is done in isolation investors are more pessimistic. The video was recorded in April 2016 at the First Annual Spring Symposium on Financial Economics organised by CEPR and the Brevan Howard Centre at Imperial College.
