This article analyzes the presence of a price bubble in the new house market for the Greater Santiago. For the above use di®erent methodologies on the Real Housing Prices Index (IRPV) prepared by CEC-CChC, all of which reject the presence of a housing bubble in the concerned market.

This paper develops a methodology based on hedonic pricing models to calculate price indexes for new houses in the Santiago province. The primary source of information are the monthly real estate sales records of the Chilean Chamber of Construction associate companies -from January 1994 to July...

Spanish Abstract: En este trabajo se presenta un marco teórico que conjunta y ordena sistemáticamente, en cuanto a complejidad y realismo, varios modelos disponibles en la literatura especializada para estimar la distribución de la volatilidad de los rendimientos diarios de índices...

The purpose of this paper is to investigate the volatility impacts of the suspension of a call auction system by the National Stock Exchange of India (NSE) in June 1999, thus extending prior empirical work relating to this area. The realised volatility on NSE is compared with that of the Bombay...

The purpose of this paper is on the one hand to analyze whether the security’s systematic risk beta estimates change as the infrequent trading phenomenon appears and on the other hand to provide useful insight on the impact of mergers and acquisitions on competition policy. The paper employs...

I analyze a model with heterogeneous investors who have incorrect beliefs about fundamentals. Investors think that they are right at first, but over time realize that they are wrong. The speed of the realization depends on investor confidence in own beliefs and arrival of new information. The...

This paper deals with the CAPM-derived capital budgeting criterion, and in particular with Rubinstein’s (1973) criterion, according to which a project is profitable if the project rate of return is greater than the risk-adjusted cost of capital, where the latter depends on the project’s...

An anchoring adjusted currency option pricing formula is developed in which the risk of the underlying currency is used as a starting point which gets adjusted upwards to arrive at the currency call risk. Anchoring bias implies that such adjustments are insufficient. The new formula converges to...

This paper examines the interactive relationships between oil price shocks and stock market in 11 OECD countries using Vector Error Correction Models (VECM). Considering both world oil production and world oil prices to supervise for oil supply and oil demand shocks, strong evidence of...

The recent financial and economic crisis highlighted the importance to better understand the relationship between liquidity developments and asset price movements. Central banks with focus on inflation targeting allowed asset price inflation, following burst, with its devastating consequences...