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The design of tests for discrimination in the credit market is controversial. This paper revisits the issue and pays … special attention to double discrimination, which consists in targeting loan applicants who belong simultaneously to two … vulnerable groups. Double discrimination may take different forms, some of which contrast with the addition of two one …
Persistent link: https://www.econbiz.de/10012920084
theory suggests that with increasing labor income risk, the reluctance of households to hold stocks increases. We propose to …
Persistent link: https://www.econbiz.de/10010350417
We examine how traders react to two prominent stock market regulations. Under a constant fundamental value (FV) process, price limits and trading restrictions significantly reduce the price level and mispricing size when traders are inexperienced. Under a Markov-process FV, there is no evidence...
Persistent link: https://www.econbiz.de/10013213876
Most retirement withdrawal rate studies are either based on historical data or use a particular assumption about portfolio returns unique to the study in question. But planners may have their own capital market expectations for future returns from stocks, bonds, and other assets they deem...
Persistent link: https://www.econbiz.de/10013031119
We experimentally investigate how price expectations are formed in a large asset market where subjects' only task is to forecast the future price of a risky asset. The realized prices depend on these expectations. We observe small (6 participants) and large markets (about 100 participants). In...
Persistent link: https://www.econbiz.de/10011979625
We provide a discipline for belief formation through an evolutionary process which favors beliefs leading to higher utility levels at the Walrasian equilibrium. We show that such an evolutionary process converges to the Nash equilibrium in a game of strategic beliefs choices. The asymptotic...
Persistent link: https://www.econbiz.de/10013037553
In this paper I study the relationship between rationality and asset prices when agents have heterogeneous and incorrect beliefs about future events. Using the fully rational pricing as a benchmark, I show that when agents behave according to the Subjective Generalized Kelly rule (Bottazzi et...
Persistent link: https://www.econbiz.de/10011805975
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