Detecting bubbles on financial markets: Phillips BSADF test

How to detect bubbles on financial markets? Is the recent bullish action in a trendy stock or your favourite cryptocurrency sustainable or just a well-orchestrated pump or irrational exuberance fueled by social media? Turns out, econometrics can help us answer this question! Today, we are investigating the Phillips et al. (2015) backward sup augmented Dickey-Fuller test to detect and datestamp bubbles on financial markets and apply it to the recent price dynamics of Dogecoin.

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