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Produce or Speculate? Asset Bubbles, Occupational Choice and Efficiency
Cahuc, Pierre - 2009
, thereby causing rational bubbles to lose their efficiency properties. Moreover, if speculation can be carried out by skilled …We study the macroeconomic effects of rational asset bubbles in an overlapping-generations economy where asset trading … are large, the private gains associated with trading asset bubbles may lead too many workers to become speculators …
Persistent link: https://www.econbiz.de/10013153172
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Mind, Body, Bubble! Psychological and Biophysical Dimensions of Behavior in Experimental Asset Markets
Butler, David - 2018
Asset market bubbles and crashes are a major source of economic instability and inefficiency. Sometimes ascribed to …
Persistent link: https://www.econbiz.de/10012917090
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To See is to Believe : Common Expectations in Experimental Asset Markets
Cheung, Stephen L. - 2012
We challenge the recent claim that mispricing in the experimental asset markets introduced by Smith, Suchanek, and Williams (1988) is merely an artefact of confusion over declining fundamental value, and can be eliminated through appropriate training. We instead propose that when training is...
Persistent link: https://www.econbiz.de/10013099096
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League-Table Incentives and Price Bubbles in Experimental Asset Markets
Cheung, Stephen L. - 2011
indicative of speculation and do not always crash back …
Persistent link: https://www.econbiz.de/10013124787
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Two Heads are Less Bubbly than One : Team Decision-Making in an Experimental Asset Market
Cheung, Stephen L. - 2009
We study the effect of team decision-making on bubbles and crashes in experimental asset markets of the kind introduced …
Persistent link: https://www.econbiz.de/10013155154
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Private Information, Human Capital, andOptimal “Home Bias” in Financial Markets
Ehrlich, Isaac; Shin, Jong Kook; Yin, Yong - Forschungsinstitut zur Zukunft der Arbeit <Bonn> - 2011
By allowing for imperfectly informed markets and the role of private information, we offer newinsights about observed deviations of portfolio concentrations in domestic relative to foreignrisky assets, or “home bias”, from what standard finance models predict. Our model ascribesthe...
Persistent link: https://www.econbiz.de/10009522205
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Testing CAPM with a Large Number of Assets
Pesaran, M. Hashem - 2012
This paper is concerned with testing the time series implications of the capital asset pricing model (CAPM) due to Sharpe (1964) and Lintner (1965), when the number of securities, N, is large relative to the time dimension, T, of the return series. In the case of cross-sectionally correlated...
Persistent link: https://www.econbiz.de/10013107698
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Rationalizing Rational Expectations? Tests and Deviations
D'Haultfœuille, Xavier - 2018
In this paper, we build a new test of rational expectations based on the marginal distributions of realizations and subjective beliefs. This test is widely applicable, including in the common situation where realizations and beliefs are observed in two different datasets that cannot be matched....
Persistent link: https://www.econbiz.de/10012906482
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Forecasting Errors : Yet More Problems for Identification?
Contini, Bruno - 2009
Forecasting errors pose a serious problem of identification, often neglected in empirical applications. Any attempt of estimating choice models under uncertainty may lead to severely biased results in the presence of forecasting errors even when individual expectations on future events are...
Persistent link: https://www.econbiz.de/10012764650
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On Gender Gaps and Self-Fulfilling Expectations : Theory, Policies and Some Empirical Evidence
de la Rica, Sara - 2008
This paper considers a simple model of self-fulfilling expectations that leads to a multiple equilibrium of gender gaps in wages and participation rates. Rather than resorting to moral hazard problems related to unobservable effort, like in most of the related literature, our model fully relies...
Persistent link: https://www.econbiz.de/10012771577