Similar Search Results

Are there bubbles in the Sterling-dollar Exchange Rate? : new evidence from Sequential ADF Tests

Bettendorf, Timo; Chen, Wenjuan - 2012

There has been mixed evidence regarding the existence of rational bubbles in the foreign exchange markets. Standard … unit root and cointegration tests are criticized for their low power to detect rational bubbles that periodically collapse …. This paper introduces recently developed sequential unit root tests into the analysis of exchange rates bubbles. Our …

Persistent link: https://www.econbiz.de/10009704893

Speculative trade and market newcomers

Klishchuk, Bogdan - 2019

Arguing that in the real world relatively optimistic inexperienced investors are prey for relatively pessimistic veteran traders, we formalize this intuitive conjecture as a proven proposition in a simple model. This agreement to disagree leads to a perpetual bubble, in which more experienced,...

Persistent link: https://www.econbiz.de/10012064782

A test of price sluggishness in the simple rational expectations model : U.K. 1950-1979

Alogoskoufis, George S.; Pissarides, Christopher A. - 1982

Persistent link: https://www.econbiz.de/10003469046

Partial adjustment of prices under rational expectation: a study of price behaviour in the Canadian textile industry

Novin, Farid - 1982

Persistent link: https://www.econbiz.de/10003529059

Businessmen's expectations are neither rational nor adaptive

Nerlove, Marc L.; Schuermann, Til - 1997

A framework which allows for the joint testing of the adaptive and rational expectations hypotheses is presented. We assume joint normality of expectations, realizations and variables in the information set, allowing for parsimonious interpretation of the data; conditional first moments are...

Persistent link: https://www.econbiz.de/10011620075