Policymakers often express concern that herding by financial market participants destabilizes markets and increases the … behavior in financial markets. It addresses the following questions: What precisely do we mean by herding? What could be the … causes of herd behavior? What success have existing studies had in identifying such behavior? And what effect does herding …

improperly processed information in financial markets, focusing on the noise trader and investor herding literature. The …

model of informational herding that can be estimated with financial transaction data. In the model, rational herding arises … because of information-event uncertainty. We estimate the model using data on a NYSE stock (Ashland Inc.) during 1995. Herding …) and is greater than 10 percent in 7 percent (11 percent) of information-event days. Herding causes important informational …

transparent countries. Herding among funds is somewhat less prevalent in more transparent countries. During the Asian and Russian …

occur in a low-income country following donor herding. The model focuses on the rational herding behavior of donors due to … payoff and information externalities. Although there are many theoretical models on herding behavior, these models have not … formally considered the relationship between donor herding and domestic debt crisis in a low-income country. This paper is an …