www.financialaccess.org Household Savings in Developing
... Armendáriz and Morduch provide the most compact and comprehensive overview of the micro-saving literature. They describe old puzzles and new opportunities. Armendáriz, Beatriz and Jonathan Morduch. 2005. “Saving and Insurance.” (extract) Chapter 6 of The Economics of Microfinance. Cambridge, MA: MIT ...
... Armendáriz and Morduch provide the most compact and comprehensive overview of the micro-saving literature. They describe old puzzles and new opportunities. Armendáriz, Beatriz and Jonathan Morduch. 2005. “Saving and Insurance.” (extract) Chapter 6 of The Economics of Microfinance. Cambridge, MA: MIT ...
Heterogeneous Beliefs, Speculation, and the Equity Premium ∗
... The representative agent paradigm with identical agents fails to take into account speculative behavior among different agents in the economy. Under this paradigm, aggregate measures of fundamentals are sufficient to measure the risks faced by agents. Given the smoothness of these aggregate variabl ...
... The representative agent paradigm with identical agents fails to take into account speculative behavior among different agents in the economy. Under this paradigm, aggregate measures of fundamentals are sufficient to measure the risks faced by agents. Given the smoothness of these aggregate variabl ...
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... • Minimax Regret (REG) is based on a different philosophy. It tries to hedge a DM’s bets, by doing reasonably well no matter what the actual state is. It is also a nonplausibilistic rule. As a first step to defining it, given a nonplausibilistic decision problem D = ((A, S, C), R, u), let u : S → U ...
... • Minimax Regret (REG) is based on a different philosophy. It tries to hedge a DM’s bets, by doing reasonably well no matter what the actual state is. It is also a nonplausibilistic rule. As a first step to defining it, given a nonplausibilistic decision problem D = ((A, S, C), R, u), let u : S → U ...
A Critique of Overreaction Effect in the Global Stock Markets over the
... and controversy in the subsequent years. DeBondt and Thaler (1985) suggested that the results of the study evidence the irrationality or irrational behaviour shown by the investors in stock markets. They suggested that when investors revise their prospects, they tend to overweight recent information ...
... and controversy in the subsequent years. DeBondt and Thaler (1985) suggested that the results of the study evidence the irrationality or irrational behaviour shown by the investors in stock markets. They suggested that when investors revise their prospects, they tend to overweight recent information ...
Fear of the Unknown: Familiarity and Economic Decisions
... Furthermore, we derive implications of familiarity bias for equilibrium asset pricing. We consider stock markets in two countries, each populated by both rational and familiarity-biased investors. Given an endowed portfolio, there is an interval of prices within which the familiarity-biased investor ...
... Furthermore, we derive implications of familiarity bias for equilibrium asset pricing. We consider stock markets in two countries, each populated by both rational and familiarity-biased investors. Given an endowed portfolio, there is an interval of prices within which the familiarity-biased investor ...
The Long-Run Discount Rate Controversy
... How should one compare benefits occurring at different time horizons? A tradition has developed over the past two centuries to make such benefits comparable by discounting.1 The discounted (or present) value of a future benefit is the immediate benefit that is considered to be socially equivalent to ...
... How should one compare benefits occurring at different time horizons? A tradition has developed over the past two centuries to make such benefits comparable by discounting.1 The discounted (or present) value of a future benefit is the immediate benefit that is considered to be socially equivalent to ...
AN INTERTEMPORAL ASSET PRICING MODEL WITH
... equilibrium model. To be consistent with general equilibrium, prices must be recognized to be endogenously determined through the equilibrium of supply and demand. The model presented is consistent with endogenously determined prices if, as assumed, all random shocks to the economy are captured as e ...
... equilibrium model. To be consistent with general equilibrium, prices must be recognized to be endogenously determined through the equilibrium of supply and demand. The model presented is consistent with endogenously determined prices if, as assumed, all random shocks to the economy are captured as e ...
Forecasting the equity premium in the Australian market
... Although the creation of good parameter estimates is often viewed as the primary goal of econometrics, to many a goal of equal importance is the production of good economic forecasts. We define the best forecast as the one, which yields the forecast error with the minimum variance. In the single equ ...
... Although the creation of good parameter estimates is often viewed as the primary goal of econometrics, to many a goal of equal importance is the production of good economic forecasts. We define the best forecast as the one, which yields the forecast error with the minimum variance. In the single equ ...
Effects of level of investors confidence and herding behavior on
... The study argues that signals deduced from observing others' decisions affect the observer choice in two different ways: not only they provide information about the choice (the chosen asset), as current theory assume, but they may also differently affect the investor's level of confidence in her own ...
... The study argues that signals deduced from observing others' decisions affect the observer choice in two different ways: not only they provide information about the choice (the chosen asset), as current theory assume, but they may also differently affect the investor's level of confidence in her own ...
Kritzman_Portfolio_formation
... sufficient for maximizing expected utility if at least one of two conditions prevails. Either portfolio returns are normally distributed or investors have quadratic utility, which is defined as E(U) = μ – λ σ2, where μ equals portfolio expected return, λ equals risk aversion, and σ2 equals portfoli ...
... sufficient for maximizing expected utility if at least one of two conditions prevails. Either portfolio returns are normally distributed or investors have quadratic utility, which is defined as E(U) = μ – λ σ2, where μ equals portfolio expected return, λ equals risk aversion, and σ2 equals portfoli ...
CAPM with Various Utility Functions: Theoretical Developments and
... of the mean and variance of the returns’ distributions. However, the second one is necessary to legitimate the formalization problem of the investor choice in a risky situation. For the Mean Variance approach to be valid, we require a quadratic utility function. This means that returns distribution ...
... of the mean and variance of the returns’ distributions. However, the second one is necessary to legitimate the formalization problem of the investor choice in a risky situation. For the Mean Variance approach to be valid, we require a quadratic utility function. This means that returns distribution ...
Is Noise Trading Cancelled Out by Aggregation?
... in stock returns. That is, idiosyncratic biases can lead to both overvaluation and undervaluation, depending on the past stock price movements. Note also that, in my model, idiosyncratic biases can lead to stock price overshooting in the sense that the expected future return is negative. This is in ...
... in stock returns. That is, idiosyncratic biases can lead to both overvaluation and undervaluation, depending on the past stock price movements. Note also that, in my model, idiosyncratic biases can lead to stock price overshooting in the sense that the expected future return is negative. This is in ...
Market Selection
... arbitrage, etc. To isolate the impact of disagreement, we populate our economies with competitive agents who only differ in their beliefs. We then analyze how survival and price impact properties of the economy depend on the primitives, such as errors in forecasts, endowment growth, and preferences. ...
... arbitrage, etc. To isolate the impact of disagreement, we populate our economies with competitive agents who only differ in their beliefs. We then analyze how survival and price impact properties of the economy depend on the primitives, such as errors in forecasts, endowment growth, and preferences. ...
What is the effect of monetary policy on market behavior?
... constant had a negative sign, but it was not statistically significant, so the long term mean is equal to zero which is what we expect as we have previously induced stationarity. The lag variable of the High Yield Spread was statistically significant and had a negative magnitude of -0.41. This means ...
... constant had a negative sign, but it was not statistically significant, so the long term mean is equal to zero which is what we expect as we have previously induced stationarity. The lag variable of the High Yield Spread was statistically significant and had a negative magnitude of -0.41. This means ...
Financial Markets and the Real Economy
... popular Fama–French (1996) three-factor model use returns on multiple portfolios to measure the marginal value of wealth. Research connecting financial markets to the real economy—the subject of this survey—goes one step deeper. It asks what are the fundamental, economic determinants of the marginal ...
... popular Fama–French (1996) three-factor model use returns on multiple portfolios to measure the marginal value of wealth. Research connecting financial markets to the real economy—the subject of this survey—goes one step deeper. It asks what are the fundamental, economic determinants of the marginal ...
Extinction
... • Spontaneous recovery = return of previously extinguished response – Critical factor: introducing period of rest between end of extinction training and assessment of responding – Behavior that is suppressed during extinction training recovers after a period of rest ...
... • Spontaneous recovery = return of previously extinguished response – Critical factor: introducing period of rest between end of extinction training and assessment of responding – Behavior that is suppressed during extinction training recovers after a period of rest ...
Investor Psychology and Security Market Under- and
... are also prone to industry booms and quiet periods. Although it is not obvious how the empirical securities market phenomena can be captured plausibly in a model based on perfect investor rationality, no psychological ~“behavioral”! theory for these phenomena has won general acceptance. Some aspects ...
... are also prone to industry booms and quiet periods. Although it is not obvious how the empirical securities market phenomena can be captured plausibly in a model based on perfect investor rationality, no psychological ~“behavioral”! theory for these phenomena has won general acceptance. Some aspects ...
Investor Sentiment and Chinese A
... regarded to be less efficient compared with that of other developed countries. Therefore, it should not be surprising that investor sentiment has an effect on the Chinese stock market. This study therefore focuses on the A shares of the Shanghai Stock Exchange (SSE) and the Shenzhen Stock Exchange ( ...
... regarded to be less efficient compared with that of other developed countries. Therefore, it should not be surprising that investor sentiment has an effect on the Chinese stock market. This study therefore focuses on the A shares of the Shanghai Stock Exchange (SSE) and the Shenzhen Stock Exchange ( ...
Articulo MC Luciano - International Journal of Psychology and
... of naming. Once a child has learned to name objects and events in the world, and this can be applied arbitrarily to almost any stimulus, this naming process is then said to mediate equivalence performances, by way of intraverbal or common naming strategies. Another account that has addressed the rel ...
... of naming. Once a child has learned to name objects and events in the world, and this can be applied arbitrarily to almost any stimulus, this naming process is then said to mediate equivalence performances, by way of intraverbal or common naming strategies. Another account that has addressed the rel ...
Cumulative Prospect Theory, Aggregation, and Pricing
... Decision weights were originally introduced in Prospect Theory to capture two behavioral effects: (i) the subjective overweighting of rare events which seemed evident in behaviors such as the purchase of lottery tickets and (ii) violations of the independence axiom accounting for the Allais paradox. ...
... Decision weights were originally introduced in Prospect Theory to capture two behavioral effects: (i) the subjective overweighting of rare events which seemed evident in behaviors such as the purchase of lottery tickets and (ii) violations of the independence axiom accounting for the Allais paradox. ...
Economics (ECON) - Northeastern University
... ECON 3410. Labor Economics. 4 Hours. Emphasizes an economic analysis of the labor market, the labor force, and wages and earnings. Explores the differences that have existed and currently exist in the labor market with regard to race, ethnicity, and gender and the theories behind why they have exist ...
... ECON 3410. Labor Economics. 4 Hours. Emphasizes an economic analysis of the labor market, the labor force, and wages and earnings. Explores the differences that have existed and currently exist in the labor market with regard to race, ethnicity, and gender and the theories behind why they have exist ...
The Effectiveness of Sell Discipline Strategies in Institutional Portfolios
... up to further loss potential, and essentially accepts a lower expected value by Zweig’s findings of lower returns for losing stocks. The risk averse investor would accept a guaranteed loss, and end up with a higher utility through avoiding future losses. In this sense, a strict sell discipline could ...
... up to further loss potential, and essentially accepts a lower expected value by Zweig’s findings of lower returns for losing stocks. The risk averse investor would accept a guaranteed loss, and end up with a higher utility through avoiding future losses. In this sense, a strict sell discipline could ...
B. R Skinner`s Contributions to Applied Behavior Analysis
... offer one such review and organize it chronologically, starting with among his first publications in 1930 and ending in 1968, when the Journal of Applied Behavior Analysis (JABA) began publication. After that, no one can be said to have founded the field; it was founded. Our exercise is inductive. W ...
... offer one such review and organize it chronologically, starting with among his first publications in 1930 and ending in 1968, when the Journal of Applied Behavior Analysis (JABA) began publication. After that, no one can be said to have founded the field; it was founded. Our exercise is inductive. W ...
NBER WORKING PAPER SERIES MARKET SELECTION Leonid Kogan Stephen Ross
... primitives, specifically in those with bounded aggregate consumption.1 Kogan, Ross, Wang, and Westerfield (2006) demonstrate in a setting without intermediate consumption that if aggregate endowment is unbounded, agents with incorrect beliefs can survive. Moreover, they show that even when such agent ...
... primitives, specifically in those with bounded aggregate consumption.1 Kogan, Ross, Wang, and Westerfield (2006) demonstrate in a setting without intermediate consumption that if aggregate endowment is unbounded, agents with incorrect beliefs can survive. Moreover, they show that even when such agent ...
More Finance Questions
... ____ 23. Historically the return on stocks has been higher than the return on bonds. In part this reflects the higher risk from holding stock. ____ 24. Risk-averse persons will take no risks. ____ 25. The market for insurance is one example of reducing risk by using diversification. ____ 26. A perso ...
... ____ 23. Historically the return on stocks has been higher than the return on bonds. In part this reflects the higher risk from holding stock. ____ 24. Risk-averse persons will take no risks. ____ 25. The market for insurance is one example of reducing risk by using diversification. ____ 26. A perso ...