This paper applies counter-factual simulation experiments based on a calibrated DSGE model of a small open-economy. We compare the alternative monetary regimes of East Asia: the monetary targeting framework of the Central Bank of the Republic of China, the fixed-rate system practiced in Hong...

This paper explores how ambiguous signals and ambiguity aversion influence individuals' expectations and the pricing of asset in experimental financial markets. In line with the theory of Epstein and Schneider (2008) we find that subjects' degree of ambiguity aversion is positively correlated...

We report on an experiment studying how traders react to stock splits and reverse splits. In the first environment, two assets have increasing fundamental values, and one asset is subject to a 2-for-1 share split while the other is not. In the second environment, the fundamental values of both...