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Exchange Rate Expectations of Chartists and Fundamentalists

Dick, Christian David - 2013

This paper provides novel evidence on exchange rate expectations of both chartists and fundamentalists separately. These groups indeed form expectations differently. Chartists change their expectations more often; however, all professionals' expectations vary considerably as they generally...

Persistent link: https://www.econbiz.de/10013083266

Markets for Information : Of Inefficient Firewalls and Efficient Monopolies

Cabrales, Antonio; Gottardi, Piero - 2021

In this paper we build a formal model to study market environments where information is costly to acquire and is of use also to potential competitors. In such situations a market for information may form, where reports - of unverifiable quality - over the information acquired are sold. A...

Persistent link: https://www.econbiz.de/10013316507

Heterogeneity in Exchange Rate Expectations : Evidence on the Chartist-Fundamentalist Approach

Menkhoff, Lukas; Rebitzky, Rafael R.; Schröder, Michael - 2021

This paper examines heterogeneity in exchange rate expectations. Whereas agents' heterogeneity is key in modern exchange rate models, evidence on determinants of heterogeneity is weak so far. Our sample, covering expectations from about 300 forecasters over 15 years, shows remarkable time...

Persistent link: https://www.econbiz.de/10013316426

Modeling Optimism and Pessimism in the Foreign Exchange Market

De Grauwe, Paul; Rovira Kaltwasser, Pablo - 2021

In this paper we model how the existence of different beliefs about the underlying fundamental value of a currency affects the dynamics of the exchange rate. We find that a divergence of beliefs creates the potential for waves of optimism and pessimism that alternate in an unpredictable way....

Persistent link: https://www.econbiz.de/10013317108

Firms' Innovation Strategy under the Shadow of Analyst Coverage

Guo, Bing - 2017

We study the effect of analyst coverage on firms' innovation strategy and outcome. By considering three different channels that allow firms to innovate: internal R&D, acquisitions of other innovative firms, and investments in corporate venture capital (CVC), we are able to distinguish between...

Persistent link: https://www.econbiz.de/10012949574

How Should Financial Intermediation Services Be Taxed?

Lockwood, Ben - 2010

This paper considers the optimal taxation of savings intermediation and payment services in a dynamic general equilibrium setting, when the government can also use consumption and income taxes. When payment services are used in strict proportion to final consumption, and the cost of...

Persistent link: https://www.econbiz.de/10013136605

Bank Competition and Financial Stability : A General Equilibrium Exposition

De Nicolo, Gianni - 2013

mechanisms for bank risk-taking studied in a large partial equilibrium literature. We show that competitive equilibriums maximize … banks is higher than that of banks enjoying monopoly rents, and is robust to the introduction of social costs of bank … failures. In this model, there is no trade-off between bank competition and financial stability …

Persistent link: https://www.econbiz.de/10013086044