Can a stochastic cusp catastrophe model explain stock market crashes？.pdfVIP

ARTICLE IN PRESSContents lists available at ScienceDirect Journal of Economic Dynamics Control Journal of Economic Dynamics Control 33 (2009) 182418 doi:10.1  Cor Czech R E-mjournal homepage: /locate/jedcCan a stochastic cusp catastrophe model explain stock market crashes?J. Barunik a,b,, M. Vosvrda a,b a Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague, Opletalova 26, 110 000, Prague 1, Czech Republic b Institute of Information Theory and Automation, Academy of Sciences of the Czech Republic, Pod Vodarenskou Vezi 4, 182 08, Prague 8, Czech